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Today's
action smacked ever so lightly of desperation. Put simply, a large
proportion of the 'investor' community are of a mind that valuation be
damned, this boat is floating and that's all there is to it. Their
second thought - like real estate 'investors' when the Auction Squad
team were known to have been around - is that they don't want to miss
out on all that imagined upside. Frankly, it's irrational.
After all...
The global economy is slowing faster than the US statistical authorities can crank the magic handles, and since Australia is still little more than a mine and a farm, there's not a great deal of positives for our market (one big positive is the flexibility of the $A, which will act as a very handy shock absorber when the economic fan-splat happens).
Major Market Indices
The
broad market - the ASX All
Ordinaries - rose by 20.60
points (0.52%), finishing at 3979.20 points. After an early dip to
3955.5 points (the dip was finished by 10:30) it was up, up and away,
with TAA.... ah, is there anything better than old jingles? (I can
still remember "The wet-head is dead... long live the Dry Look from
Gillette").
The day's rally was punctured at noon, with an inexplicable 10-point drop in the All Ords in less than five minutes. From there the market regained its composure (or more accurately ,its mania) and rose consistently to close at its high.
Total volume traded on the ASX was a little under 800 million units, 6.8% below its 10-day average. Of the 483 stocks in the All Ords, 208 rose and 159 fell. Volume was tilted in favour of the gainers by a margin of 1.7:1, with 282.40 million shares traded in gainers compared to 168.21 million shares traded in stocks that left holders with a loss for the session.
The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 - rose by 23.20 points (0.58%), finishing at 4028.90 points.
The "heavy hitters" of the Australian market - the ASX 20 Leaders - rose by 14.70 points (0.67%), finishing at 2199.60 points. Within the index members, there were 13 that rose, and 7 losers. Total volume in rising issues within the ASX20 amounted to 75.37 million shares - as compared to the 30.28 million shares changing hands in the decliners.
The major winners in the "big guns" were -
- AMP Limited (AMP), +$0.22 (3.3%) to $6.88 on volume of 11.8m shares;
- Amcor (AMC), +$0.18 (2.8%) to $6.60 on volume of 5.83m shares;
- Foster's Group (FGL), +$0.10 (1.94%) to $5.26 on volume of 5.88m shares;
- Westpac Banking Corporation (WBC), +$0.32 (1.66%) to $19.59 on volume of 6.16m shares; and
- National Australia Bank (NAB), +$0.47 (1.54%) to $30.92 on volume of 9.81m shares.
The following stocks made up the biggest percentage losers in the big-guns:
- Wesfarmers (WES), -$0.55 (1.49%) to $36.25 on volume of 857,000 shares;
- Alumina (AWC), -$0.07 (1.22%) to $5.66 on volume of 5.19m shares;
- Rio Tinto (RIO), -$0.45 (1.03%) to $43.18 on volume of 3.42m shares;
- BHP Billiton (BHP), -$0.14 (0.85%) to $16.29 on volume of 15.74m shares; and
- QBE Insurance Group (QBE), -$0.04 (0.27%) to $14.81 on volume of 838,000 shares.
At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index rose by 9.30 points (0.43%), finishing at 2157.90 points. Of the 194 stocks in the index, 84 rose and 66 fell. Volume was actually tilted in favour of the losers by a margin of 1.7:1, with 73.64 million shares traded in losers compared to 43.35million shares traded in gainers. The major winners in the "pop-guns" were -
- Integrated Group (IWF), +$0.14 (8.38%) to $1.81 on volume of 109,000 shares;
- Great Southern Plantations (GTP), +$0.24 (7.06%) to $3.64 on volume of 1.78m shares;
- Agenix (AGX), +$0.02 (6.67%) to $0.32 on volume of 377,000 shares;
- Emperor Mines (EMP), +$0.02 (6.45%) to $0.33 on volume of 31,000 shares; and
- Pacifica Group (PBB), +$0.09 (6.38%) to $1.50 on volume of 1.62m shares.
The losingest-little-guys for the session were (in order of decline):
- Village Life Ltd (VLL), -$0.10 (18.18%) to $0.45 on volume of 14.39m shares;
- Ventracor (VCR), -$0.17 (14.17%) to $1.03 on volume of 12.36m shares; and
- Rebel Sport (REB), -$0.24 (10.26%) to $2.10 on volume of 67,000 shares;
- Perilya (PEM), -$0.06 (7.32%) to $0.76 on volume of 277,000 shares; and
- Multiemedia (MUL), -$0.00 (5.88%) to $0.02 on volume of 3.42m shares.
| Index Changes | |||||
| Code | Name | Close | +/- | % | Volume |
| XAO | All Ordinaries | 3979.2 | 20.6 | 0.52% | 572.34m |
| XTL | S&P/ASX 20 | 2199.6 | 14.7 | 0.67% | 105.65m |
| XFL | S&P/ASX 50 | 4000.8 | 25.9 | 0.65% | 0 |
| XTO | S&P/ASX 100 | 3285.9 | 19.4 | 0.59% | 0 |
| XJO | S&P/ASX 200 | 4028.9 | 23.2 | 0.58% | 455.25m |
| XKO | S&P/ASX 300 | 4021.8 | 23.2 | 0.58% | 0 |
| XMD | S&P/ASX Mid-Cap 50 | 3844.7 | 9.6 | 0.25% | 0 |
| XSO | S&P/ASX Small Ordinaries | 2157.9 | 9.3 | 0.43% | 162.12m |
All Ordinaries Market Internals
| Market Breadth | |||||
| XAO | XJO | XSO | ASX20 | Market | |
| Advances | 208 | 103 | 84 | 13 | 473 |
| Declines | 159 | 68 | 66 | 7 | 391 |
| Advancing Volume | 282.4m | 250.23m | 43.35m | 75.37 | 405.46 |
| Declining Volume | 168.21m | 126.07m | 73.64m | 30.28 | 254.47 |
S&P/ASX200 GICS Sector Indices
The top sector for the day was Information Technology which gained 1.45% to 343.10 points. The sector only has 7 components, and today 5 rose while just 1 fell (Infomedia fell 1c). and Baycorp Advantage was unchanged. Volume was tilted in favour of the gainers by a margin of 6.5:1, with 4.65million shares traded in gainers while 720k shares were traded in IFM The sector was helped by
- ERG (ERG), +$0.02 (5.88%) to $0.27 on volume of 2.09m shares;
- IRESS Market Technology (IRE), +$0.10 (2.69%) to $3.82 on volume of 123,000 shares;
- Vision Systems. (VSL), +$0.03 (2.44%) to $1.05 on volume of 331,000 shares;
- Computershare. (CPU), +$0.08 (1.55%) to $5.23 on volume of 1.35m shares; and
- MYOB (MYO), +$0.02 (1.53%) to $1.00 on volume of 748,000 shares.
Second in the sector leadership stakes was Telecommunications which gained 1.39% to 1753.10 points. This sector - as you probably know by now - is a 2-stock wonder, with the overwhelming bulk of the index's changes determined by the price action in Telstra. Today -
- Telstra Corporation (TLS), +$0.07 (1.45%) to $4.91 on volume of 14.48m shares;
- Telecom Corporation Of New Zealand (TEL), +$0.06 (1.08%) to $5.62 on volume of 3.54m shares.
The bronze today went to ASX200 Financials ex Property Trusts which gained 1.28% to 5022.00 points. Of the 27 stocks in the sector, 18 rose while 5 fell. Volume was tilted in favour of the gainers by a ridiculous margin of 29.1:1, with 50.37million shares traded in gainers while a paltry 1.73million shares traded in the sector's losers The sector was led by
- Record Investments (RCD), +$0.21 (4.41%) to $4.97 on volume of 517,000 shares;
- AXA Asia Pacific Holdings (AXA), +$0.16 (3.77%) to $4.40 on volume of 2.62m shares;
- AMP Limited (AMP), +$0.22 (3.3%) to $6.88 on volume of 11.8m shares;
- SFE Corporation (SFE), +$0.25 (2.72%) to $9.45 on volume of 699,000 shares; and
- Lend Lease Corporation (LLC), +$0.30 (2.51%) to $12.25 on volume of 1.9m shares.
The worst-performed sector today was Utilities which lost 0.78% to 4806.70 points. The sector contains 8 stocks, and today 4 rose and only 3 fell (Pacific Hydro was unchanged). Still, market cap weighting means that if our big components fall, the sector probably does so as well. Volume was tilted in favour of the losers by a margin of 1.5:1, with 2.12million shares traded in losers while 1.45million shares traded in the sector's advancing stocks. The sector was dragged lower by
- Alinta (ALN), -$0.14 (1.48%) to $9.32 on volume of 1.05m shares;
- Energy Developments (ENE),
-$0.05 (1.32%) to $3.75 on volume of 103,000 shares; and
- Australian Gas Light Company (AGL), -$0.16 (1.15%) to $13.81 on volume of 962,000 shares.
Just in front of last place on the sector table was Energy which lost 0.49% to 8197.50 points - chalk that up to the downdraft in Crude Oil overnight. The sector was pulled down by
- Hardman Resources (HDR), -$0.03 (1.69%) to $1.74 on volume of 2.59m shares;
- Santos (STO), -$0.13 (1.31%) to $9.77 on volume of 3.95m shares; and
- Australian Worldwide Exploration (AWE), -$0.02 (1.2%) to $1.65 on volume of 306,000 shares;
- Caltex Australia (CTX), -$0.13 (0.89%) to $14.55 on volume of 478,000 shares; and
- Roc Oil Company (ROC), -$0.01 (0.58%) to $1.73 on volume of 272,000 shares.
| Sector Indices | |||||
| Code | GICS Sector | Close | +/- | % | Volume |
| XIJ | Information Technology | 343.1 | 4.9 | 1.45% | 5.73m |
| XTJ | Telecommunications | 1753.1 | 24 | 1.39% | 18.03m |
| XXJ | ASX200 Financials ex Property Trusts | 5022 | 63.6 | 1.28% | 61.75m |
| XSJ | Consumer Staples | 5357.7 | 54.1 | 1.02% | 63.07m |
| XFJ | Financials | 4918.6 | 49.5 | 1.02% | 169.33m |
| XDJ | Consumer Discretionary | 2078.5 | 15.4 | 0.75% | 37.21m |
| XNJ | Industrials | 4722.4 | 5.1 | 0.11% | 48.35m |
| XPJ | Property Trusts | 1741.5 | 1.4 | 0.08% | 111.36m |
| XHJ | Healthcare | 4795.3 | -7.6 | -0.16% | 19.97m |
| XMJ | Materials | 6661 | -15.7 | -0.24% | 78.58m |
| XEJ | Energy | 8197.5 | -40 | -0.49% | 18.17m |
| XUJ | Utilities | 4806.7 | -37.8 | -0.78% | 4.24m |
All Ordinaries Major Movers
| All Ords Volume Leaders | |||||
| Code | Name | Close | +/- | % | Volume |
| DRT | DB Rreef Trust | 1.34 | 0 | 0% | 24.62m |
| SRP | Southcorp | 4.27 | 0.01 | 0.23% | 24.56m |
| BHP | BHP Billiton | 16.29 | -0.14 | -0.85% | 15.74m |
| TLS | Telstra Corporation. | 4.91 | 0.07 | 1.45% | 14.48m |
| VLL | Village Life Ltd | 0.45 | -0.1 | -18.18% | 14.39m |
| MAP | Macquarie Airports | 3.3 | -0.08 | -2.37% | 13.51m |
| All Ords Percentage Gainers | |||||
| Code | Name | Close | +/- | % | Volume |
| PNA | Pan Australian Resources | 0.24 | 0.03 | 11.63% | 4.11m |
| IWF | Integrated Group | 1.81 | 0.14 | 8.38% | 109260 |
| MST | Metal Storm | 0.15 | 0.01 | 7.14% | 794647 |
| GTP | Great Southern Plantations | 3.64 | 0.24 | 7.06% | 1.78m |
| AGX | Agenix | 0.32 | 0.02 | 6.67% | 376578 |
| All Ords Percentage Decliners | |||||
| Code | Name | Close | +/- | % | Volume |
| VLL | Village Life Ltd | 0.45 | -0.1 | -18.18% | 14.39m |
| VCR | Ventracor | 1.03 | -0.17 | -14.17% | 12.36m |
| REB | Rebel Sport | 2.1 | -0.24 | -10.26% | 66952 |
| EPT | Epitan | 0.45 | -0.05 | -10% | 1.05m |
| AAU | Adcorp Australia | 0.75 | -0.08 | -9.64% | 1.37m |
Elsewhere in the Region...
Japan's Nikkei 225 fell 42.76 points (-0.38%) to close at 11077.94 points after spending much of the day oscillating around 11100. The index hit a high of 11135.5 in the first half-hour, set its session low at 11069.69 points during the last minutes of the session.
The Kiwi Market advanced 26.97 points (0.93%) after threatening to move sideways for the first half hour. There was a little dip in the first ten minutes, which resulted in the session low print at 2913.75 points. But after 9:15 a.m. Auckland time, it was one-way traffic - up all the way - with the Kiwi market closing on its high tick for the day at 2940.721 points.
A total of 27 stocks within the NZSE50 rose, with volume in advancers totalling 14.1million units. Decliners numbered 11, and total volume traded in losers was 3.3million shares. That's pretty light-on, really - but let's look at the biggest percentage gainers in the Land of the Long White Cloud...
- AMP Limited (AMP), +NZ$0.35 (5.04%) to NZ$7.30 on volume of 12,000 shares;
- Pumpkin Patch (PPL), +NZ$0.12 (4.65%) to NZ$2.70 on volume of 110,000 shares;
- Tower Limited (TWR), +NZ$0.06 (3.23%) to NZ$1.92 on volume of 568,000 shares;
- Air New Zealand (AIR), +NZ$0.04 (3.05%) to NZ$1.35 on volume of 541,000 shares;
- APN News & Media (APN), +NZ$0.14 (2.85%) to NZ$5.06 on volume of 0,000 shares; and
- Baycorp Advantage (BCA), +NZ$0.07 (2.59%) to NZ$2.77 on volume of 90,000 shares.
Hong Kong's Hang Seng index has advanced 25.52 points (0.18%) to sit at 13966.32 at lunchtime. Like all the regional bourses today (except Japan), the HK index dipped to set its session low (13928.07points) in the first half-hour, then bounced. Unlike the other regionals, the bounce didn't "stick" for the entire session (at least, it appears to have stalled). After bouncing 50 points in less than half an hour, the index set its session high (so far) at 13982.09 points just before 10:45 a.m. HK time.
Within the Hang Seng, 16 index components rose, while 5 stocks fell. Volume in the gainers in Hong Kong's big-cap index totalled 52.1million units, and total volume traded in losers was 5.7million shares. Individual stocks that contributed to the advance included...
- Lenovo Group (0992), +HK$0.05 (2%) to HK$2.55 on volume of 5.92m shares;
- MTR Corporation (0066), +HK$0.25 (1.9%) to HK$13.40 on volume of 4.69m shares;
- Johnson Electronics H (0179), +HK$0.10 (1.4%) to HK$7.25 on volume of 1.23m shares;
- Esprit Holdings (0330), +HK$0.50 (0.87%) to HK$58.00 on volume of 349,000 shares;
- Wheelock (0020), +HK$0.10 (0.86%) to HK$11.75 on volume of 102,000 shares; and
- China Unicom (0762), +HK$0.05 (0.81%) to HK$6.25 on volume of 3.87m shares.
| Regional Indices | |||||
| Country | Name | Close | +/- | % | Volume |
| New Zealand | NZSE50 | 2940.721 | 26.97 | 0.93% | 18.97m |
| Japan | Nikkei 225 | 11077.94 | -42.76 | -0.38% | 70581 |
| Korea | KOSPI | 921.21 | -2.17 | -0.24% | 301323 |
| Singapore | Straits Times | 2180.42 | 7.28 | 0.33% | 0 |
| Hong Kong | Hang Seng | 13965.32 | 25.52 | 0.18% | 75.77m |
| Malaysia | KLSE Comp | 893.57 | -5.13 | -0.57% | 0 |
