Interdum stultus opportuna loquitur...

Thursday, July 21, 2005

OzRant: Burst To A New Record, Then Sideways...

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The broad market - the ASX All Ordinaries- rose by 39.40 points (0.92%), finishing at 4302.70 points - a new closing record. The index hit an intraday high of 4309.80 - also a new record - just before 10:30 a.m. Sydney time. The session low was 4263.3, set at the open: the entire day's trading range was set in the first half-hour, and the remainder of the session was literally sideways.

There was a clear sense of short-squeezing to the opening action - even though the amount of short interest in stocks in always miniscule thanks to the ludicrous ASX restrictions on the amount of stock that can legally be held short. Still, there are always short futures, and squeezes in those will drive index arb buying. That doesn't help explain the outperformance of the small fry today though.

Total volume traded on the ASX was 1.04 billion units, 12.0% above its 10-day average.Of the 483 stocks in the index, 238 rose while 116 fell. Volume was tilted in favour of the gainers by a margin of 5.8:1, with 540.34million shares traded in gainers while 92.57million shares traded in they days losers ..

The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 - rose by 42.00 points (0.98%), finishing at 4343.20 points.

The "heavy hitters" of the Australian market - the ASX 20 Leaders - rose by 23.30 points (1.01%), finishing at 2334.50 points. Within the index members, there were 19 that rose, and 1 loser  -Westpac Banking Corporation ( WBC), -$0.06 (0.31%) to $19.49 on volume of 7.76m shares. Total volume in rising issues within the ASX20 amounted to 123.04m units while volume in the losers totalled 7.76m units.

Clearly nothing will ever go wrong at any time in the future... not as long as John Howard's tongue is within striking distance of George Bush's sphincter. No risk premium is required in stocks whatsoever - despite the fact that we live in a world where we are all supposed to be shitting ourselves that the world is full of mad Musselmen who "hate our freedom". Comparing the 2-year note yield to the dividend yield on stocks, 2-year notes are apparently riskier. I will bet here and now, that in 2 years the aggregate return on 2-year notes will have beaten the living crap out of the aggregate return on stocks over the same period.

The major winners in the "big guns" were -

  • Alumina (AWC), +$0.21 (3.75%) to $5.81 on volume of 8.61m shares;
  • BHP Billiton (BHP), +$0.35 (1.88%) to $19.00 on volume of 19.58m shares; and
  • AMP Limited (AMP), +$0.12 (1.81%) to $6.75 on volume of 11.34m shares; and
  • Amcor (AMC), +$0.12 (1.76%) to $6.92 on volume of 2.39m shares; and
  • Rio Tinto (RIO), +$0.74 (1.6%) to $46.87 on volume of 2.98m shares.

As already mentioned above, the sole loser in the big-guns was:

  • Westpac Banking Corporation (WBC), -$0.06 (0.31%) to $19.49 on volume of 7.76m shares.

At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index rose by 26.20 points (1.10%), finishing at 2405.50 points. The major winners in the "pop-guns" were -

  • Multiemedia (MUL), +$0.004 (23.53%) to $0.021 on volume of 120.8m shares;
  • Excel Coal (EXL), +$0.690 (9.25%) to $8.150 on volume of 1.83m shares; and
  • Schaffer Corporation (SFC), +$0.400 (7.27%) to $5.900 on volume of 29,000 shares; and
  • Kingsgate Consolidated (KCN), +$0.210 (7.22%) to $3.120 on volume of 972,000 shares; and
  • Dragon Mining (DRA), +$0.010 (5.26%) to $0.200 on volume of 244,000 shares.

The losingest-little-guys for the session were (in order of decline):

  • Lynas Corporation (LYC), -$0.010 (6.67%) to $0.140 on volume of 160,000 shares;
  • Primelife Corporation (PLF), -$0.060 (5.56%) to $1.020 on volume of 1.2m shares; and
  • Kresta Holdings (KRS), -$0.010 (4%) to $0.240 on volume of 74,000 shares; and
  • Infomedia Ltd (IFM), -$0.025 (3.97%) to $0.605 on volume of 598,000 shares; and
  • Antares Energy (AZZ), -$0.015 (3.33%) to $0.435 on volume of 421,000 shares.
Index Changes
XAOAll Ordinaries4302.739.40.92%744.93m
XTLS&P/ASX 202334.523.31.01%130.8m
XFLS&P/ASX 504289.1400.94%267.96m
XTOS&P/ASX 1003529.833.30.95%405.25m
XJOS&P/ASX 2004343.2420.98%514.51m
XKOS&P/ASX 3004334.741.50.97%0
XMDS&P/ASX Mid-Cap 504179.141.81.01%0
XSOS&P/ASX Small Ordinaries2405.526.21.1%276.54m

All Ordinaries Market Internals

Market Breadth

Advancing Volume123.04m308.57m373.3m540.34m210.06m615.2m
Declining Volume7.76m62.75m78.83m92.57m24.21m301.95m

S&P/ASX200 GICS Sector Indices

The top sector for the day was Information Technology which gained 2.35% to 387.80 points. The sector was helped by

  • Computershare (CPU), +$0.160 (2.76%) to $5.960 on volume of 4.56m shares;
  • IRESS Market Technology (IRE), +$0.110 (2.66%) to $4.240 on volume of 523,000 shares; and
  • ERG (ERG), +$0.005 (1.89%) to $0.270 on volume of 1.66m shares; and
  • Vision Systems (VSL), +$0.020 (1.74%) to $1.170 on volume of 2.28m shares; and
  • Baycorp Advantage (BCA), +$0.040 (1.38%) to $2.940 on volume of 397,000 shares.

Second in the sector leadership stakes was Materials which gained 1.89% to 7629.20 points. The sector leaders were -

  • Excel Coal (EXL), +$0.690 (9.25%) to $8.150 on volume of 1.83m shares;
  • Kingsgate Consolidated (KCN), +$0.210 (7.22%) to $3.120 on volume of 972,000 shares; and
  • Zinifex (ZFX), +$0.120 (4.11%) to $3.040 on volume of 5.29m shares; and
  • Sims Group (SMS), +$0.590 (4%) to $15.330 on volume of 916,000 shares; and
  • Alumina (AWC), +$0.210 (3.75%) to $5.810 on volume of 8.61m shares.

The bronze today went to Healthcare which gained 1.24% to 5393.80 points. The sector was led by

  • Sonic Healthcare (SHL), +$0.340 (2.79%) to $12.540 on volume of 439,000 shares;
  • DCA Group (DVC), +$0.090 (2.3%) to $4.000 on volume of 4.96m shares; and
  • Mayne Group (MAY), +$0.100 (2.12%) to $4.810 on volume of 2.72m shares; and
  • Healthscope (HSP), +$0.100 (2.01%) to $5.080 on volume of 1.9m shares; and
  • Peptech (PTD), +$0.025 (1.66%) to $1.530 on volume of 828,000 shares.
No sectors fell today - it was all wine and roses (or beer and skittles if you prefer, but I fail to see how beer goes with lollies). Utilities may have only just snuck its nose past the winning post, but it still managed a gain.

Sector Indices
CodeGICS SectorClose+/-%Volume
XIJInformation Technology387.88.92.35%10.6m
XDJConsumer Discretionary228318.90.83%48.54m
XSJConsumer Staples5658.145.60.81%34.79m
XXJASX200 Financials ex Property Trusts5242.836.70.7%78.68m
XPJProperty Trusts1788.111.10.62%96.46m

All Ordinaries Major Movers

All Ords Volume Leaders
TLSTelstra Corporation5.060.020.4%21.08m
BHPBHP Billiton19.000.351.88%19.58m
DYLDeep Yellow0.13-0.01-3.85%13.46m
MSTMetal Storm0.210.0751.85%13.38m
OSHOil Search3.310.030.91%12.05m

All Ords Percentage Gainers
MSTMetal Storm0.210.0751.85%13.38m
EXLExcel Coal8.150.699.25%1.83m
GGNGallery Gold0.330.038.2%1.12m
SFCSchaffer Corporation5.900.407.27%29454

All Ords Percentage Decliners
PLFPrimelife Corporation1.02-0.06-5.56%1.2m
UNIUnilife Medical Solutions0.6-0.03-4.76%105200
IFMInfomedia Ltd0.61-0.03-3.97%598483
AZZAntares Energy0.44-0.02-3.33%420910

Elsewhere in the Region...

Regional Indices
New ZealandNZSE503310.381-9.36-0.28%23.71m
JapanNikkei 22511786.73-2.62-0.02%0
SingaporeStraits Times2313.354.090.18%0
Hong KongHang Seng14615.2212.520.09%169.34m
MalaysiaKLSE Comp922.71-1.3-0.14%0