Interdum stultus opportuna loquitur...

Tuesday, September 06, 2005

OzRant: A Gain... JUST...

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

Note: there appears to be some problem with comments at the moment - unfortunately I don't have time to investigate it. I'm aware of the problem though, and will get onto it as soon as I get time...

Congratulations to Four Corners for their terrific expose of the Adler-esque behaviour of the management of Multiplex; I've blathered before about management that behave as if the entire equity of the business is theirs tp pfaff around with as they see fit. This MXG debacle seems to be a case in point. 

Frankly, I would behave like Judge Roy Bean with any company Director or senior exec who gave misleading or non-timely advice to the exchange (and/or to shareholders). If a senior manager said 'the worst is over' and six months later it turned out 'not so much', I would throw the fucker into a fair-dinkum high security jail - raise their 'sphincter risk premium'. 

If corporate execs knew they faced the risk of getting shafted even more brutally than the way they shaft their shareholders, perhaps they would behave a little less like some sort of landed aristocracy and more like custodians. And the very idea that a company would keep schtum about bad news because it would affect a capital raising... if true, they ought to be put into the darkest hole in the dankest 'joint' in the country.

And of course UBS - the broker/investment bank - were also an utter disgrace. About in line with expectations, frankly. What have I said before?...

Never EVER believe any research from a firm that has a ticket-clipping arm. NEVER. You would be better off setting your portfolio and your house on fire. You have been warned.

Major Market Indices

The broad market - the ASX All Ordinaries (XAO) - gave mack the lion's share of an early advance, but still managed to hold on to a gain of 5.10 points (0.12%), finishing at 4422.30 points. 

The index hit an intraday high of 4436.30 about 45 minutes into the session, after opening at its low (4415.7).

Total volume traded on the ASX was 930 million units, 2.0% below its 10-day average. 

Of the 486 stocks in the All Ords, 177 rose and 171 fell. Volume was tilted in favour of the losers by a margin of 1.1:1, with 253.24 million shares traded in losers while 236.95million shares traded in the day's gainers.

The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 (XJO) - rose by 6.60 points (0.15%), finishing at 4462.00 points.

The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - fell by 1.70 points (-0.07%), finishing at 2355.10 points. Within the index members, there were 10 that rose, and 8 losers. Total volume in rising issues within the ASX20 amounted to a relatively lame 29.39m shares,  while volume in the losers totalled 132.98m units.

The major winners in the "big guns" were -

  • QBE Insurance Group (QBE), +$0.210 (1.24%) to $17.210 on volume of 3.7m shares;
  • St George Bank (SGB), +$0.230 (0.85%) to $27.240 on volume of 875,000 shares;
  • Australia And New Zealand Banking Group (ANZ), +$0.160 (0.72%) to $22.300 on volume of 4m shares;
  • Westpac Banking Corporation (WBC), +$0.120 (0.59%) to $20.300 on volume of 5.51m shares; and
  • Coles Myer Ltd (CML), +$0.050 (0.51%) to $9.930 on volume of 2.33m shares.

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

  • Rio Tinto (RIO), -$0.96 (1.86%) to $50.60 on volume of 2.36m shares;
  • Foster's Group (FGL), -$0.06 (1.07%) to $5.54 on volume of 2.78m shares; and
  • Woodside Petroleum (WPL), -$0.34 (1.04%) to $32.42 on volume of 1.27m shares (was last week's call on WPL some kick-ass good timing, or what?);
  • BHP Billiton (BHP), -$0.21 (1.03%) to $20.25 on volume of 15.96m shares; and
  • Telstra Corporation (TLS), -$0.02 (0.46%) to $4.32 on volume of 105.56m shares.
I have to say that I still agree with Australia's best small-cap stock-picker - Anton Tagliaferro - in his view on TLS; the company has a terrific ability to generate free cash regardless of its current malaise. That said, it looks like TLS is going to behave just like Commonwealth; recall that everybody wanted the first tranche (C1) which then did quite well. As a result, everybody wanted C2... then the price dived and burned them. The result: nobody wanted C3. Instos sat in the queue and bought what they needed at bargain basement prices, and the rest, as they say, is history.

At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index (XSO) - the only place where underexploited value exists with any regularity - rose by 5.10 points (0.20%), finishing at 2581.60 points. The major winners in the "pop-guns" were -

  • Multiemedia (MUL), +$0.002 (10.53%) to $0.021 on volume of 38.52m shares;
  • Tap Oil (TAP), +$0.160 (6.27%) to $2.710 on volume of 1.85m shares; and
  • Sirtex Medical (SRX), +$0.100 (5.38%) to $1.960 on volume of 7,000 shares; and
  • Kagara Zinc (KZL), +$0.060 (4.51%) to $1.390 on volume of 1.2m shares; and
  • Kresta Holdings (KRS), +$0.010 (4.35%) to $0.240 on volume of 36,000 shares.

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

  • Norwood Abbey (NAL), -$0.045 (9%) to $0.455 on volume of 897,000 shares;
  • ERG (ERG), -$0.010 (5.26%) to $0.180 on volume of 3.88m shares; and
  • Hills Industries (HIL), -$0.250 (5.08%) to $4.670 on volume of 148,000 shares; and
  • Orbital Corporation (OEC), -$0.005 (4.17%) to $0.115 on volume of 363,000 shares; and
  • Australian Worldwide Exploration (AWE), -$0.090 (3.95%) to $2.190 on volume of 5.21m shares.
Index Changes
XAOAll Ordinaries4422.35.10.12%593.47m
XTLS&P/ASX 202355.1-1.7-0.07%171.19m
XFLS&P/ASX 504350.43.80.09%268.21m
XTOS&P/ASX 1003613.450.14%361.06m
XJOS&P/ASX 20044626.60.15%455.53m
XKOS&P/ASX 3004456.56.40.14%0
XMDS&P/ASX Mid-Cap 504507.718.60.41%0
XSOS&P/ASX Small Ordinaries2581.65.10.2%200.65m

All Ordinaries Market Internals

Market Breadth
Advancing Volume29.39m145.62m165.7m236.9591.97339.22
Declining Volume132.98m172.15m204.53m253.2465.91411.64

S&P/ASX200 GICS Sector Indices

The top sector for the day was XPJ Property Trusts which gained 0.72% to 1866.70 points. The sector was helped by

  • Multiplex Group (MXG), +$0.120 (3.73%) to $3.340 on volume of 2.89m shares;
  • Mirvac Group (MGR), +$0.130 (3.29%) to $4.080 on volume of 3.94m shares;
  • Investa Property Group (IPG), +$0.050 (2.37%) to $2.160 on volume of 4.36m shares;
  • ING Office Fund (IOF), +$0.020 (1.47%) to $1.380 on volume of 1.28m shares; and
  • Stockland (SGP), +$0.080 (1.34%) to $6.060 on volume of 4.66m shares.

Second in the sector leadership stakes was XNJ Industrials which gained 0.56% to 5362.90 points. The sector leaders were -

  • Transurban Group (TCL), +$0.180 (2.52%) to $7.310 on volume of 4.4m shares;
  • Spotless Group (SPT), +$0.120 (2.4%) to $5.120 on volume of 209,000 shares;
  • Macquarie Infrastructure Group (MIG), +$0.080 (1.96%) to $4.170 on volume of 14.96m shares;
  • Crane Group (CRG), +$0.130 (1.25%) to $10.540 on volume of 172,000 shares; and
  • Leighton Holdings (LEI), +$0.150 (1%) to $15.200 on volume of 898,000 shares.

The bronze today went to XFJ Financials which gained 0.47% to 5232.80 points. The sector was led by

  • Multiplex Group (MXG), +$0.120 (3.73%) to $3.340 on volume of 2.89m shares - a contrarian punt based on last night's story, perhaps?;
  • Australand Property Group (ALZ), +$0.065 (3.6%) to $1.870 on volume of 1.17m shares;
  • Mirvac Group (MGR), +$0.130 (3.29%) to $4.080 on volume of 3.94m shares;
  • Oamps (OMP), +$0.090 (2.93%) to $3.160 on volume of 209,000 shares; and
  • IOOF Holdings (IFL), +$0.200 (2.75%) to $7.480 on volume of 297,000 shares.

The worst-performed sector today was XMJ Materials which lost 0.59% to 8076.80 points. The sector was dragged lower by

  • Sims Group (SMS), -$1.070 (5.82%) to $17.330 on volume of 774,000 shares;
  • Rio Tinto (RIO), -$0.960 (1.86%) to $50.600 on volume of 2.36m shares;
  • Newcrest Mining (NCM), -$0.270 (1.55%) to $17.200 on volume of 566,000 shares;
  • Lihir Gold (LHG), -$0.020 (1.4%) to $1.405 on volume of 5.26m shares; and
  • Timbercorp (TIM), -$0.030 (1.36%) to $2.180 on volume of 184,000 shares.

Just in front of last place on the sector table was "Telstra-and-a-bit" - the two-stock XTJ Telecommunications index, which lost 0.41% to 1574.40 points. The sector was pulled down by

  • Telstra Corporation (TLS), -$0.020 (0.46%) to $4.320 on volume of 105.56m shares; and
  • Telecom Corporation Of New Zealand (TEL), -$0.010 (0.18%) to $5.600 on volume of 3.63m shares.
Sector Indices
CodeGICS SectorClose+/-%Volume
XPJProperty Trusts1866.713.40.72%59.59m
XDJConsumer Discretionary2320.410.60.46%35.69m
XXJASX200 Financials ex Property Trusts5331.121.20.4%55.89m
XIJInformation Technology433.60.50.12%5.67m
XSJConsumer Staples5775.43.80.07%19.75m

All Ordinaries Major Movers

All Ords Volume Leaders
TLSTelstra Corporation4.32-0.02-0.46%105.56m
BHPBHP Billiton20.25-0.21-1.03%15.96m
MIGMacquarie Infrastructure Group4.170.081.96%14.96m
BPTBeach Petroleum0.76-0.02-1.95%14.29m
CSMConsolidated Minerals3.97-0.03-0.75%14.2m
MOSMosaic Oil0.240.012.13%13.1m
All Ords Percentage Gainers
UNWUnwired Group0.590.0610.38%1.58m
TAPTap Oil2.710.166.27%1.85m
KZLKagara Zinc1.390.064.51%1.2m
WOTCAWestpac Office Trust0.620.034.24%82000
All Ords Percentage Decliners
WFLWillmott Forests1.78-0.18-9.18%54953
NALNorwood Abbey0.46-0.05-9%897240
SMSSims Group17.33-1.07-5.82%774364
ETWEvans & Tate0.25-0.02-5.66%384407

Elsewhere in the Region...

Regional Indices
New ZealandNZSE503362.175-11.54-0.34%20.34m
JapanNikkei 22512599.43-35.45-0.28%0
SingaporeStraits Times2287.64-6.33-0.28%0
Hong KongHang Seng15213.25-14.58-0.1%116.86m
MalaysiaKLSE Comp914.074.330.48%0