Interdum stultus opportuna loquitur...

Wednesday, September 28, 2005

OzRant: It Can't Bring Itself To Fall...

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

For the first time in a long while, the domestic market didn't trade in a range which was obviously circumscribed by 'quarters'. The closing print of each of the two primary indices (the All Ords and the ASX200) were both at quarters, but the highs and lows of each bore no proximity to the nearest quarter.

I don't view this as a sudden outbreak of sanity among the domestic 'investing' community (who are we kidding even bothering to use the word 'investment' anymore? The whole thing is about as 'investment' oriented as the average night at the greyhounds). 

Everyone is still twitterpated about the whole 'weight of money' argument - invented by the brokerage community - that claims that because domestic citizens are being forced to save through Superannuation, that there will be all this new money for the brokers to fritter down to zero.

Stop and think about where you've heard arguments like that before. Think about the "they're not buiilding any more CBD land" arguments from the last commercial property boom, the "population is growing but the supply of inner-city real estate is limited" argument from the tail-end of the recent residential 'investment' property boom.

Then look across the ocean to Japan. A nation of savers (with a savings rate of 25-odd percent), with a much more highly constrained supply of both commercial and residential land. And yet in that country, residential and commercial property prices fell 80% in the five major cities from peak to trough... and all those savings did sod-all for the Nikkei as it dove down from 39000 to 7000 over 12 years.

I guess the ticket clippers think that nobody bothers to vet their arguments - they are like the Perle/Wolfowitz NeoTrotskyites, thinking that they can say what they like because nobody will bother to check. 

That's what selling shit is about - giving the potential customer a story that looks attractive on the surface. I wonder when brokers will start trying to claim that their services reduce the appearance of fine lines, or make your hair shinier?

If a company listed that was in the business of making shit sandwiches, and was paying enough in investment banking fees, brokers would be fawning all over the fact that the shit sandwiches had low-GI bread.

But anyhow...

Major Market Indices

The broad market - the ASX All Ordinaries (XAO) - fell by 1.50 points (-0.03%), finishing at 4575.20 points. The index hit an intraday high of 4585.00 and its low was 4561.8.

Total volume traded on the ASX was 1.24 billion units, 10.6% above its 10-day average. Of the 483 stocks in the index, 224 fell while 145 managed a gain. Volume was tilted in favour of the losers by a margin of 2.5:1, with 422.44million shares traded in losers while 169.28million 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) - fell by 1.60 points (-0.03%), finishing at 4627.60 points.

The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - rose by 4.10 points (0.17%), finishing at 2472.60 points. Within the index members, there were 8 that rose, and 12 losers. Total volume in rising issues within the ASX20 amounted to 32.28 while volume in the losers totalled 117.02m units.

The major winners in the "big guns" were -

  • QBE Insurance Group (QBE), +$0.300 (1.64%) to $18.620 on volume of 4.47m shares;
  • Woodside Petroleum (WPL), +$0.400 (1.15%) to $35.080 on volume of 1.46m shares;
  • Australia And New Zealand Banking Group (ANZ), +$0.200 (0.84%) to $24.080 on volume of 5.31m shares;
  • National Australia Bank (NAB), +$0.270 (0.81%) to $33.500 on volume of 6.53m shares; and
  • Woolworths (WOW), +$0.130 (0.79%) to $16.550 on volume of 4.94m shares.

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

  • AMP Limited (AMP), -$0.08 (1.09%) to $7.28 on volume of 5.01m shares; and
  • Alumina (AWC), -$0.06 (1%) to $5.96 on volume of 4.87m shares; and
  • BHP Billiton (BHP), -$0.20 (0.91%) to $21.81 on volume of 12.25m shares.

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 - fell by 11.10 points (-0.42%), finishing at 2645.60 points. The major winners in the "pop-guns" were -

  • Psivida (PSD), +$0.050 (5.88%) to $0.900 on volume of 381,000 shares;
  • Progen Industries (PGL), +$0.110 (4.62%) to $2.490 on volume of 4,000 shares; and
  • Norwood Abbey (NAL), +$0.020 (4.35%) to $0.480 on volume of 392,000 shares; and
  • Silex Systems (SLX), +$0.050 (4.31%) to $1.210 on volume of 212,000 shares; and
  • Primelife Corporation (PLF), +$0.055 (4.28%) to $1.340 on volume of 1.76m shares.

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

  • Multiemedia (MUL), -$0.002 (10%) to $0.018 on volume of 51.44m shares;
  • Coffey International (COF), -$0.250 (6.76%) to $3.450 on volume of 191,000 shares; and
  • Resolute Mining (RSG), -$0.065 (4.55%) to $1.365 on volume of 1.22m shares; and
  • Village Life Ltd (VLL), -$0.020 (4.4%) to $0.435 on volume of 478,000 shares; and
  • Macmahon Holdings (MAH), -$0.025 (4.31%) to $0.555 on volume of 1.45m shares.
Index Changes
XAOAll Ordinaries4575.2-1.5-0.03%657.76m
XTLS&P/ASX 202472.64.10.17%149.3m
XFLS&P/ASX 504524.2-1.3-0.03%284.29m
XTOS&P/ASX 1003751.2-0.10%422.91m
XJOS&P/ASX 2004627.6-1.6-0.03%512.59m
XKOS&P/ASX 3004620.9-1.9-0.04%0
XMDS&P/ASX Mid-Cap 504635.76.90.15%0
XSOS&P/ASX Small Ordinaries2645.6-11.1-0.42%185.31m

All Ordinaries Market Internals

Market Breadth
Advancing Volume32.28m118.06m158.17m169.2837.04503.5
Declining Volume117.02m280.71m312.22m422.44126.64588.53

S&P/ASX200 GICS Sector Indices

The top sector for the day was XXJ ASX200 Financials ex Property Trusts which gained 0.50% to 5606.80 points. The sector was helped by

  • SFE Corporation (SFE), +$0.390 (3.15%) to $12.780 on volume of 796,000 shares;
  • Macquarie Bank (MBL), +$2.060 (2.76%) to $76.700 on volume of 866,000 shares;
  • Lend Lease Corporation (LLC), +$0.380 (2.74%) to $14.230 on volume of 2.41m shares;
  • QBE Insurance Group (QBE), +$0.300 (1.64%) to $18.620 on volume of 4.47m shares; and
  • Australand Property Group (ALZ), +$0.020 (1.03%) to $1.955 on volume of 1.03m shares.

Second in the sector leadership stakes was XEJ Energy which gained 0.37% to 10810.80 points. The sector leaders were -

  • Oil Search (OSH), +$0.060 (1.57%) to $3.880 on volume of 6.67m shares;
  • Caltex Australia (CTX), +$0.240 (1.22%) to $19.990 on volume of 538,000 shares;
  • Woodside Petroleum (WPL), +$0.400 (1.15%) to $35.080 on volume of 1.46m shares;
  • Tap Oil (TAP), +$0.030 (1.05%) to $2.880 on volume of 542,000 shares; and
  • Arc Energy (ARQ), +$0.020 (0.97%) to $2.080 on volume of 1.24m shares.
It's about time to lay out shorts/sell covered calls/buy naked puts on Woodside, I reckon.

The bronze today went to XFJ Financials which gained 0.21% to 5437.90 points. The sector was led by

  • SFE Corporation (SFE), +$0.390 (3.15%) to $12.780 on volume of 796,000 shares;
  • Macquarie Bank (MBL), +$2.060 (2.76%) to $76.700 on volume of 866,000 shares;
  • Lend Lease Corporation (LLC), +$0.380 (2.74%) to $14.230 on volume of 2.41m shares;
  • QBE Insurance Group (QBE), +$0.300 (1.64%) to $18.620 on volume of 4.47m shares; and
  • Australand Property Group (ALZ), +$0.020 (1.03%) to $1.955 on volume of 1.03m shares.

The worst-performed sector today was XUJ Utilities which lost 0.97% to 5199.00 points. The sector was dragged lower by

  • Australian Pipeline Trust (APA), -$0.110 (3.2%) to $3.330 on volume of 561,000 shares;
  • Diversified Utility And Energy Trusts (DUE), -$0.080 (3.01%) to $2.580 on volume of 704,000 shares;
  • Energy Developments (ENE), -$0.130 (2.72%) to $4.650 on volume of 252,000 shares;
  • Envestra (ENV), -$0.020 (1.61%) to $1.220 on volume of 236,000 shares; and
  • Australian Gas Light Company (AGL), -$0.130 (0.88%) to $14.560 on volume of 1.16m shares.

Just in front of last place on the sector table was XPJ Property Trusts which lost 0.86% to 1858.90 points. The sector was pulled down by

  • General Property Trust (GPT), -$0.100 (2.48%) to $3.940 on volume of 6.89m shares;
  • Mirvac Group (MGR), -$0.070 (1.69%) to $4.080 on volume of 14.15m shares; and
  • Multiplex Group (MXG), -$0.040 (1.26%) to $3.130 on volume of 3.37m shares; and
  • Macquarie Countrywide Trust (MCW), -$0.025 (1.24%) to $1.985 on volume of 5.51m shares; and
  • Centro Properties Group (CNP), -$0.060 (0.99%) to $6.030 on volume of 3.68m shares.
Sector Indices
CodeGICS SectorClose+/-%Volume
XXJASX200 Financials ex Property Trusts5606.828.10.5%60.58m
XSJConsumer Staples5921.12.50.04%27.58m
XIJInformation Technology436.1-0.7-0.16%6.82m
XDJConsumer Discretionary2314-6.5-0.28%49.82m
XPJProperty Trusts1858.9-16.2-0.86%97.41m

All Ordinaries Major Movers

All Ords Volume Leaders
TLSTelstra Corporation4.04-0.01-0.25%66.26m
DYLDeep Yellow0.190.015.56%29.76m
SGTSingapore Telecommunications1.9-0.03-1.3%22.88m
BSLBluescope Steel9.59-0.47-4.67%16.22m
ALLAristocrat Leisure11.670.110.95%16.13m
MGRMirvac Group4.08-0.07-1.69%14.15m
All Ords Percentage Gainers
TIRTitan Resources0.0510.00510.87%2.82m
ALKAlkane Exploration0.180.029.09%565720
NHCNew Hope Corporation1.50.128.33%4.12m
All Ords Percentage Decliners
TGRTassal Group1.02-0.07-6.42%200474
BSLBluescope Steel9.59-0.47-4.67%16.22m
RSGResolute Mining1.37-0.07-4.55%1.22m
VLLVillage Life Ltd0.44-0.02-4.4%478394

Elsewhere in the Region...

Regional Indices
New ZealandNZSE503449.41317.490.51%26.59m
JapanNikkei 22513435.91125.870.95%0
SingaporeStraits Times2302.77-3.73-0.16%0
Hong KongHang Seng15245.4855.60.37%182.17m
MalaysiaKLSE Comp927.22-0.49-0.05%0