Interdum stultus opportuna loquitur...

Thursday, July 14, 2005

OzRant: Time To Collect Premium, I Reckon...

Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.

Fate just has a way of giving a chap a good kick "skwayah in the nuhtz", as Cartman often says. Today, as you will see from the utter lack of formatting (at least, at present), Fate decided to play Rochambeau with RantCentral, and it was Fate's turn to go first.

As usual, I refrain from reading anything infernal into the issue (e.g., hacking or anything of that nature); I would bet that the hosting company is running some maintenance (or, as luck would have it, upgrading my install of mySQL just as I've managed to work around the requirement for the upgrade... ain't it always the way?)

That's by the by, however... with "RantPro" inoperative/offline, the blog has no guidance on how to present things (the CSS file for the blog is stored on "RantPro". The greater pain is that I asked half a dozen folks to check out how cool I've made the new RantCharts... ten minutes before RantPro fell over. Tedious...

Note also that with RantPro down, the RantBox system is also down, so clicking on the RantBox links in the tables will give you nuthin',,,

Major Market Indices

The broad market - the ASX All Ordinaries - burst out of the gate like a duck shot in the bum, rising to above 4250 within 15 minutes of the open. From there it was a stolid affair all day - eventually the market managed to gain a further 7 points before the close ,eventually showing a gain for the day of 17.50 points (0.41%), finishing at 4257.70 points. The index hit an intraday high of 4258.90 a few minutes before the close, and the open was the intraday low (4240.2).

Total volume traded on the ASX was reasonable at 880 million units - 1.4% above its 10-day average. Of the 483 stocks in the index, 207 rose while 140 fell. Volume was tilted in favour of the gainers by a slim margin of 1.1:1, with 176.81 million shares traded in gainers while 164.68 million shares traded in the day's losers.

The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 - rose by 14.80 points (0.35%), finishing at 4295.10 points. It never traded above 4300 - folks should be reasonably furtive about adding to long exposure at this point; if I had some optionable big-cap Aussie stocks I would be selling covered calls like my life depended on it: pocket the premium and let the optimists accept their ass-kicking like men. If nothing else, at least that way you need a decent spurt to feel aggrieved - and from positions this overbought, spurts will only be temporary.

My take on it is this: with call premium this abundant, the likelihood that OOM calls finish dead is high (especially if they've got some time to run and they're in stocks that are flagrantly overbought). As such, it would be remiss not to capture some of it by selling covered calls (again, if I was long domestic big-caps).

Speaking of domestic big-caps...

The "heavy hitters" of the Australian market - the ASX 20 Leaders - rose by 10.00 points (0.43%), finishing at 2311.10 points. Within the index members, there were 15 that rose, and 5 losers. Total volume in rising issues within the ASX20 amounted to 40.39 while volume in the losers totalled 37.74m units.

The major winners in the "big guns" were -

  • News Corporation (NWSLV), +$0.40 (1.83%) to $22.21 on volume of 2.24m shares;
  • News Corporation (NWS), +$0.35 (1.52%) to $23.35 on volume of 3.39m shares; and
  • National Australia Bank (NAB), +$0.38 (1.24%) to $31.06 on volume of 3.76m shares; and
  • Amcor (AMC), +$0.07 (1.04%) to $6.82 on volume of 2.53m shares; and
  • Commonwealth Bank Of Australia (CBA), +$0.38 (0.99%) to $38.72 on volume of 2.58m shares.

The following stocks made up the biggest percentage losers in the big-guns:

  • Westfield Group (WDC), -$0.15 (0.85%) to $17.58 on volume of 5.06m shares;
  • Alumina (AWC), -$0.03 (0.53%) to $5.66 on volume of 3.47m shares; and
  • Telstra Corporation (TLS), -$0.01 (0.2%) to $5.00 on volume of 19.64m shares; and
  • BHP Billiton (BHP), -$0.03 (0.16%) to $18.70 on volume of 9.19m shares; and
  • Wesfarmers (WES), -$0.04 (0.1%) to $38.98 on volume of 384,000 shares.

At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index - the only place where underexploited value exists with any regularity - rose by 16.10 points (0.68%), finishing at 2370.20 points. The major winners in the "pop-guns" were -

  • Multiemedia (MUL), +$0.001 (7.14%) to $0.015 on volume of 11.07m shares;
  • Southern Cross Broadcasting (Australia) (SBC), +$0.650 (5.46%) to $12.550 on volume of 161,000 shares; and
  • Nufarm (NUF), +$0.480 (4.82%) to $10.430 on volume of 250,000 shares; and
  • Orbital Corporation (OEC), +$0.005 (4.76%) to $0.110 on volume of 512,000 shares; and
  • Vision Systems (VSL), +$0.050 (4.59%) to $1.140 on volume of 193,000 shares.

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

  • Globe International (GLB), -$0.025 (7.25%) to $0.320 on volume of 2.63m shares;
  • Agenix (AGX), -$0.020 (5.88%) to $0.320 on volume of 191,000 shares; and
  • SDI (SDI), -$0.025 (3.57%) to $0.675 on volume of 49,000 shares; and
  • Resolute Mining (RSG), -$0.035 (3.29%) to $1.030 on volume of 352,000 shares; and
  • Perseverance Corporation (PSV), -$0.010 (3.03%) to $0.320 on volume of 571,000 shares.
Index Changes
XAOAll Ordinaries4257.717.50.41%460.56m
XTLS&P/ASX 202311.1100.43%78.13m
XFLS&P/ASX 504240.414.50.34%169.06m
XTOS&P/ASX 1003492.3110.32%274.05m
XJOS&P/ASX 2004295.114.80.35%353.15m
XKOS&P/ASX 300428714.80.35%0
XMDS&P/ASX Mid-Cap 5041536.50.16%0
XSOS&P/ASX Small Ordinaries2370.216.10.68%132.16m

All Ordinaries Market Internals

Market Breadth

Advancing Volume40.39m112.92m136.61m176.8151.4465.59
Declining Volume37.74m132.14m151.12m164.6833.65312.48

S&P/ASX200 GICS Sector Indices

The top sector for the day was Consumer Discretionary which gained 1.10% to 2268.50 points. The sector was helped by

  • Southern Cross Broadcasting (Australia) (SBC), +$0.65 (5.46%) to $12.55 on volume of 161,000 shares;
  • West Australian Newspapers (WAN), +$0.26 (3.16%) to $8.49 on volume of 425,000 shares; and
  • Unitab (UTB), +$0.370 (2.81%) to $13.54 on volume of 217,000 shares; and
  • Publishing & Broadcasting (PBL), +$0.40 (2.69%) to $15.25 on volume of 1.93m shares; and
  • Ten Network Holdings (TEN), +$0.09 (2.54%) to $3.64 on volume of 2.63m shares.

Second in the sector leadership stakes was ASX200 Financials ex Property Trusts which gained 0.89% to 5196.50 points. The sector leaders were -

  • Tower (TWR), +$0.065 (3.52%) to $1.91 on volume of 651,000 shares;
  • FKP Property Group (FKP), +$0.09 (3.16%) to $2.94 on volume of 1.76m shares; and
  • Perpetual Trustees Australia (PPT), +$1.45 (2.43%) to $61.20 on volume of 83,000 shares; and
  • IOOF Holdings (IFL), +$0.13 (1.94%) to $6.83 on volume of 29,000 shares; and
  • Adelaide Bank (ADB), +$0.21 (1.8%) to $11.86 on volume of 195,000 shares.

The bronze today went to Utilities which gained 0.64% to 4994.10 points. The sector was led by

  • Diversified Utility And Energy Trusts (DUE), +$0.050 (2.04%) to $2.500 on volume of 802,000 shares;
  • Australian Pipeline Trust (APA), +$0.070 (1.9%) to $3.750 on volume of 182,000 shares;
  • Alinta (ALN), +$0.100 (1.03%) to $9.800 on volume of 558,000 shares;
  • Envestra (ENV), +$0.005 (0.44%) to $1.135 on volume of 408,000 shares; and
  • Australian Gas Light Company (AGL), +$0.060 (0.42%) to $14.350 on volume of 1.11m shares.

The worst-performed sector today was Property Trusts which lost 0.83% to 1803.10 points. The sector was dragged lower by

  • DB Rreef Trust (DRT), -$0.040 (2.86%) to $1.360 on volume of 13.11m shares;
  • Bunnings Warehouse Property Trust (BWP), -$0.040 (2.05%) to $1.910 on volume of 71,000 shares; and
  • Valad Property Group (VPG), -$0.025 (1.79%) to $1.370 on volume of 7.12m shares; and
  • Stockland (SGP), -$0.080 (1.39%) to $5.680 on volume of 3.27m shares; and
  • Macquarie Office Trust (MOF), -$0.015 (1.15%) to $1.290 on volume of 1.64m shares.

Just in front of last place on the sector table was Telecommunications which lost a paltry 0.09% to 1781.20 points. The sector was pulled down by

  • Telstra Corporation (TLS), -$0.010 (0.2%) to $5.000 on volume of 19.64m shares; despite the fact that
  • Telecom Corporation Of New Zealand (TEL), added $0.030 (0.53%) to $5.640 on volume of 1.13m shares.
Sector Indices
CodeGICS SectorClose+/-%Volume
XDJConsumer Discretionary2268.524.71.1%26.96m
XXJASX200 Financials ex Property Trusts5196.545.60.89%48.57m
XIJInformation Technology381.22.20.58%7.53m
XSJConsumer Staples5577.414.30.26%26.04m
XPJProperty Trusts1803.1-15-0.83%86.56m

All Ordinaries Major Movers

All Ords Volume Leaders
TLSTelstra Corporation5.00-0.01-0.2%19.64m
DYLDeep Yellow0.120.0054.35%17.45m
CRTConsolidated Rutile0.560.035.66%15.42m
DRTDB Rreef Trust1.36-0.04-2.86%13.11m
GPTGeneral Property Trust3.77-0.02-0.53%10.56m

All Ords Percentage Gainers
CRTConsolidated Rutile0.560.035.66%15.42m
SBCSouthern Cross Broadcasting (Australia)12.550.655.46%160540

All Ords Percentage Decliners
AGIAinsworth Game Technology0.585-0.055-8.59%300040
CDXCDS Technologies2.03-0.17-7.73%51900
GLBGlobe International0.32-0.025-7.25%2.63m
AAUAdcorp Australia0.66-0.04-5.04%312910

Elsewhere in the Region...

Japan's Nikkei 225 rose 104.42 points (0.90%) to close at 11764.26 points. The index hit a high of 11784.51 about a half hour after the start of the post-lunch session, after opening at its low (11715.46 points).

The Kiwi Market declined 2.46 points (-0.07%) after gapping up strongly at the open. The index hit a high of 3333.823 a few minutes into the session, and fell to 3313.732 points just after 2 p.m. NZ time.

A total of 13 stocks within the NZSE50 rose, with volume in advancers totalling 12.4million units. Decliners numbered 23, and total volume traded in losers was 9.3million shares. Individual stocks that were a but suck included...

  • NGC Holdings (NGC), -NZ$0.10 (2.54%) to NZ$3.84 on volume of 509,000 shares;
  • Restaurant Brands (RBD), -NZ$0.03 (1.84%) to NZ$1.60 on volume of 1.55m shares;
  • Fletcher Building (FBU), -NZ$0.12 (1.71%) to NZ$6.88 on volume of 499,000 shares;
  • Fisher & Paykel H (FPH), -NZ$0.06 (1.67%) to NZ$3.54 on volume of 324,000 shares; and
  • Feltex Carpets  (FTX), -NZ$0.01 (1.64%) to NZ$0.60 on volume of 182,000 shares.

Hong Kong's Hang Sengindex advanced 122.72 points (0.86%) to 14430.02 at lunchtime. The index hit a high of 14475.89 just after 11:10 HK time (it opened with a gap up of almost 100 points, at 14389.37points, and was above 14400 within the first 5 minutes of trade).

Within the Hang Seng, 24 index components rose, while 5 stocks fell. Volume in the gainers in Hong Kong's big-cap index totalled 234.9million units, and total volume traded in losers was 65.7million shares. Individual stocks that contributed to the advance included...

  • Lenovo Group (0992), +HK$0.18 (7.37%) to HK$2.55 on volume of 51.4m shares;
  • Swire Pacific A (0019), +HK$2.90 (4.02%) to HK$75.10 on volume of 3.3m shares;
  • Cheung Kong (0001), +HK$1.95 (2.48%) to HK$80.50 on volume of 13.92m shares;
  • China Unicom (0762), +HK$0.15 (2.38%) to HK$6.45 on volume of 11.98m shares;
  • BOC Hong Kong (2388), +HK$0.30 (2.05%) to HK$14.95 on volume of 51m shares; and
  • Denway Motors (0203), +HK$0.05 (1.85%) to HK$2.75 on volume of 13.82m shares.
Regional Indices
New ZealandNZSE503321.225-2.46-0.07%23.3m
JapanNikkei 22511764.26104.420.9%0
SingaporeStraits Times2247.058.040.36%0
Hong KongHang Seng14430.02122.720.86%317.15m
MalaysiaKLSE Comp918.125.050.55%0