Interdum stultus opportuna loquitur...

Friday, October 14, 2005

OzRant: 250 And Counting...

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

A while ago - with the All Ords just above 4500, I think it might have been - I postulated that the Australian market was at a point where a short trade had 500 points' worth of potential, while a long trade had no more than 100 points... 

I have searched my little archive for the reference, but that archive was thrown into disarray recently by an unwelcome exploitation of a security hole. 17 year old teenagers are a bane at the best of times, but when they are armed with a computer they can do significant damage. (In case you're wondering, it's part of the reason why the OzRant has been absent lo these past days).

I will try to find the reference again and will post it. There's nothing I like better than pointing out a good call (especially if I made it).

Personally it would not surprise me if viruses are the deliberate work of government-sponsored activity - the Internet is the most significant anti-State tool since Cato's Letters and the Pamphleteers. Governments worldwide are constantly annoyed by having their propaganda efforts undermined by the Internet - the bilateral-whore relationship between government and Big Media is undermined by the global reach and ease of access provided by, e.g., blogs. the ywill try to control it quite soon - governments are always populated by fascist centralisers who think that they ought to be able to run (and ruin) people's lives.

You will have read (if you've been a reader for a while) my views on why governments spend so much on advertising; it is the carrot. (The stick, of course, is media ownership policy). At the moment, the government is slathering the carrots around like there's no budget - the Australian government is now thr largest advertiser in the country. And for our money, we get facile ads that simply lie. For example, the idea that work conditions are protected 'by law' is - as with most things spouted by a politician - true only in a highly specific circumstance: namely, where the terms being negotiated are not pursuant to a change of job. So for people who don't move jobs between now and when the government eventually falls (they all do), "protected by law' is true: for everyone else, it's a crock.

I'm no friend of the trade union movement, as most people would be aware by now. But when you see the oily gits from the Chambers of Commerce all smiling, looking like the government has given them a life membership to Blowjobs-R-Us, you get the idea that the 'reform' has largely one set of beneficiaries... keep in mind that Chambers of Commerce are simply Business' Trade Unions... just as the Law Society is the lawyers Trade Union, the AMA is the Doctor's Trade Union, the ASCPA and ICA are the Accountants' Trade Union... it's all about reducing open competition in an attempt to increase the returns to their constituents.

I've always liked a statement about preferment that was uttered by Professor Coconut (Brian Parmenter) - "Those who deserve it, don't need it. Those who need it, dont' deserve it." It also applies to trades that form 'guilds' or unions. Only employers who need to exploit their labour will benefit from this policy; it will not generate employment - it will cause a reduction in real wage growth, but that will not translate into an increase in profits.

Major Market Indices

The broad market - the ASX All Ordinaries (XAO) - fell another 23.60 points (-0.54%), finishing at 4371.30 points. The index hit an intraday high oduring a little bump upwards at the end of the first half hour, when it managed to register 4395.10 (4400-ish); from there it dropped for an hour before teh Friday torpor set im... it wandered along the bottom of the pre-midday range, eventually just ticking down below the 11:45 a.m. low to set its session low at  3359.7 with just under an hour left in the session.

Total volume traded on the ASX was 0.98 billion units, 12.8% below its 10-day average. Of the 483 stocks in the index, 191 fell while 165 managed a gain. Volume was pretty evenly split - the gainers held the day (just) with 255.12million shares traded in gainers while 243.93million 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 (XJO) - fell by 24.90 points (-0.56%), finishing at 4406.10 points. It dipped below 4400 a couple of times, but a little bump at the close helped avoid the ignominy of a sub-4400 close. With a likely bounce in the US starting tonight, that close should be significant for a few sessions.

The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - fell by 15.60 points (-0.66%), finishing at 2347.80 points. Within the index members, there were 6 that rose, and 10 losers. Total volume in rising issues within the ASX20 amounted to 44.53 while volume in the losers totalled 53.49m units.

The major winners in the "big guns" were -

  • Westfield Group (WDC), +$0.300 (1.85%) to $16.540 on volume of 5.97m shares;
  • Foster's Group (FGL), +$0.040 (0.72%) to $5.600 on volume of 5.45m shares;
  • Telstra Corporation (TLS), +$0.020 (0.49%) to $4.120 on volume of 27.33m shares;
  • Woolworths (WOW), +$0.060 (0.39%) to $15.460 on volume of 3.31m shares; and
  • Commonwealth Bank Of Australia (CBA), +$0.100 (0.27%) to $37.500 on volume of 1.98m shares.

The biggest percentage losers in the big-guns were a very 'Resource-ful' lot:

  • Rio Tinto (RIO), -$1.480 (2.61%) to $55.210 on volume of 2.71m shares;
  • BHP Billiton (BHP), -$0.49 (2.39%) to $19.98 on volume of 21.94m shares;
  • Alumina (AWC), -$0.12 (2.08%) to $5.66 on volume of 7.63m shares; and 
  • Woodside Petroleum (WPL), -$0.48 (1.48%) to $31.90 on volume of 1.78m 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 13.20 points (-0.52%), finishing at 2544.70 points. The major winners in the "pop-guns" were -

  • Austral Coal (AUO), +$0.300 (25%) to $1.500 on volume of 0,000 shares;
  • Ventracor (VCR), +$0.080 (7.55%) to $1.140 on volume of 2.08m shares; and
  • Sino Gold (SGX), +$0.140 (6.09%) to $2.440 on volume of 689,000 shares; and
  • Programmed Maintenance Services (PRG), +$0.150 (4.67%) to $3.360 on volume of 53,000 shares; and
  • Cellestis (CST), +$0.110 (4.62%) to $2.490 on volume of 77,000 shares.

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

  • SDI (SDI), -$0.045 (5.66%) to $0.750 on volume of 28,000 shares;
  • Consolidated Minerals (CSM), -$0.210 (5.53%) to $3.590 on volume of 1.72m shares; and
  • Hardman Resources (HDR), -$0.100 (4.52%) to $2.110 on volume of 7.64m shares; and
  • Alesco Corporation (ALS), -$0.370 (4.24%) to $8.360 on volume of 157,000 shares; and
  • Australian Worldwide Exploration (AWE), -$0.090 (4.04%) to $2.140 on volume of 1.1m shares.
Index Changes
XAOAll Ordinaries4371.3-23.6-0.54%572.42m
XTLS&P/ASX 202347.8-15.6-0.66%100.96m
XFLS&P/ASX 504302.7-27.7-0.64%220.39m
XTOS&P/ASX 1003570.7-20.1-0.56%379.44m
XJOS&P/ASX 2004406.1-24.9-0.56%471.87m
XKOS&P/ASX 3004402.9-24.5-0.55%0
XMDS&P/ASX Mid-Cap 504436.6-2.5-0.06%0
XSOS&P/ASX Small Ordinaries2544.7-13.2-0.52%144.21m

All Ordinaries Market Internals

Market Breadth
Advancing Volume44.53m192.83m208.88m255.1243.2445.31
Declining Volume53.49m161.62m218.51m243.9371.35422.24

S&P/ASX200 GICS Sector Indices

The top sector for the day was XPJ Property Trusts which gained 1.56% to 1832.70 points. The sector was helped by

  • Valad Property Group (VPG), +$0.040 (2.9%) to $1.420 on volume of 908,000 shares;
  • Multiplex Group (MXG), +$0.090 (2.8%) to $3.300 on volume of 3.64m shares;
  • Stockland (SGP), +$0.130 (2.16%) to $6.150 on volume of 4.5m shares;
  • Bunnings Warehouse Property Trust (BWP), +$0.040 (1.99%) to $2.050 on volume of 142,000 shares; and
  • Investa Property Group (IPG), +$0.040 (1.97%) to $2.070 on volume of 12.68m shares.

Second in the sector leadership stakes was XHJ Healthcare which gained 0.22% to 5801.90 points. The sector leaders were -

  • Ventracor (VCR), +$0.080 (7.55%) to $1.140 on volume of 2.08m shares;
  • DCA Group (DVC), +$0.100 (2.78%) to $3.700 on volume of 1.37m shares;
  • Sonic Healthcare (SHL), +$0.310 (2.07%) to $15.270 on volume of 704,000 shares;
  • Healthscope (HSP), +$0.100 (1.69%) to $6.000 on volume of 592,000 shares; and
  • Resmed Inc (RMD), +$0.070 (1.45%) to $4.900 on volume of 1.37m shares.

The bronze today went to XTJ Telecommunications which gained 0.21% to 1507.40 points - entirely dur to Telstra Corporation (TLS), +$0.020 (0.49%) to $4.120 on volume of 27.33m shares; the sector's other component was down (Telecom Corporation Of New Zealand (TEL), -$0.060 (1.09%) to $5.460 on volume of 1.35m shares).

The worst-performed sector today was XEJ Energy which lost 2.32% to 10010.70 points. The sector was dragged lower by

  • Oil Search (OSH), -$0.170 (4.76%) to $3.400 on volume of 7.15m shares;
  • Hardman Resources (HDR), -$0.100 (4.52%) to $2.110 on volume of 7.64m shares;
  • Australian Worldwide Exploration (AWE), -$0.090 (4.04%) to $2.140 on volume of 1.1m shares;
  • Tap Oil (TAP), -$0.100 (3.77%) to $2.550 on volume of 852,000 shares; and
  • Santos (STO), -$0.450 (3.71%) to $11.680 on volume of 1.79m shares.

Just in front of last place on the sector table was XMJ Materials which lost 1.37% to 8084.60 points. The sector was pulled down by

  • Excel Coal (EXL), -$0.210 (3%) to $6.800 on volume of 909,000 shares;
  • Smorgon Steel Group (SSX), -$0.045 (2.91%) to $1.500 on volume of 1.82m shares;
  • Minara Resources (MRE), -$0.050 (2.78%) to $1.750 on volume of 2.1m shares;
  • Kimberley Diamond Company (KIM), -$0.035 (2.71%) to $1.255 on volume of 636,000 shares; and
  • Rio Tinto (RIO), -$1.480 (2.61%) to $55.210 on volume of 2.71m shares.
Sector Indices
CodeGICS SectorClose+/-%Volume
XPJProperty Trusts1832.728.21.56%115.71m
XSJConsumer Staples5636.8-2.8-0.05%39.56m
XXJASX200 Financials ex Property Trusts5356-26.5-0.49%48.08m
XDJConsumer Discretionary2217.8-13.4-0.6%23.2m
XIJInformation Technology414.4-5.3-1.26%3.4m

All Ordinaries Major Movers

All Ords Volume Leaders
TLSTelstra Corporation4.120.020.49%27.33m
GANCFS Gandel Retail Trust1.950.041.83%25m
CPACommonwealth Property Office Fund1.230.021.65%24.21m
BHPBHP Billiton19.98-0.49-2.39%21.94m
BTABiota Holdings2.220.3518.72%19.7m
BPCBurns, Philp & Company1.06-0.02-1.86%19.06m
All Ords Percentage Gainers
BTABiota Holdings2.220.3518.72%19.7m
SPLStarpharma Holdings0.620.058.77%92302
SGXSino Gold2.440.146.09%688578
All Ords Percentage Decliners
OMIOccupational & Medical Innovations1.55-0.2-11.43%103089
CRTConsolidated Rutile0.67-0.05-6.94%721444
UNWUnwired Group0.52-0.04-6.31%524508
DOMDominion Mining0.54-0.04-6.09%177979
CSMConsolidated Minerals3.59-0.21-5.53%1.72m

Elsewhere in the Region...

Regional Indices
New ZealandNZSE503351.617-11.35-0.34%16.17m
JapanNikkei 22513420.54-28.7-0.21%0
SingaporeStraits Times2312.18-8.52-0.37%0
Hong KongHang Seng14473.08-148.75-1.02%206.58m
MalaysiaKLSE Comp926.95-0.17-0.02%0