Interdum stultus opportuna loquitur...

Wednesday, November 16, 2005

OzRant: I Smell A Rat...

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

The broad market - the ASX All Ordinaries (XAO) - rose by 15.30 points (0.34%), finishing at 4560.20 points. The index opened by dipping to a high-probability intraday low (4537.7) - it coincided with the 10:15 a.m. CCI buying divergence in the SPI (and which in turn coincided with a 'tease break' of SPI 4600, and a smoothed-%R oversold... the only bigger way to scream "Buy" would have been to write it in big letters on the Harbour Bridge).

Total volume traded on the ASX was 940 million units, 4.8% below its 10-day average. Of the 487 stocks in the index, 140 fell while 135 managed a gain. Volume was tilted in favour of the gainers by a margin of 1.3:1, with 229.17million shares traded in gainers while 170.63million shares traded in the day's losers.

As the Index RantBreadth tables show, the recent advance is happening on fairly feeble internals; the advance is more and more being 'sponsored' (or 'underwritten' is perhaps a better word) by a narrowing group of stocks. That's not healthy, but for the moment that's what it is.

The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 (XJO) - rose by 17.90 points (0.39%), finishing at 4621.10 points.

The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - rose by 16.90 points (0.68%), finishing at 2501.40 points. Within the index members, there were 15 that rose, and 4 losers (Telstra was unchanged). Total volume in rising issues within the ASX20 amounted to 54.12m while volume in the losers totalled 17.35m units.

The major winners in the "big guns" were -

  • QBE Insurance Group (QBE), +$0.410 (2.17%) to $19.320 on volume of 2.37m shares;
  • Macquarie Bank (MBL), +$1.450 (2.12%) to $69.950 on volume of 784,000 shares;
  • Australia And New Zealand Banking Group (ANZ), +$0.400 (1.7%) to $23.900 on volume of 6.33m shares;
  • Westpac Banking Corporation (WBC), +$0.340 (1.51%) to $22.880 on volume of 9.1m shares; and
  • Wesfarmers (WES), +$0.510 (1.38%) to $37.400 on volume of 805,000 shares.

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

  • Alumina (AWC), -$0.080 (1.26%) to $6.250 on volume of 3.03m shares;
  • Woodside Petroleum (WPL), -$0.27 (0.84%) to $31.98 on volume of 1.39m shares;
  • Rio Tinto (RIO), -$0.36 (0.59%) to $60.60 on volume of 1.72m shares;
  • BHP Billiton (BHP), -$0.11 (0.51%) to $21.42 on volume of 11.2m shares
Yet again, there was massive turnover in Telstra Corporation (TLS), which finished unchanged and yet with volume of 144.78m shares dwarfed the turnover in all other ASX20 stocks combined.

Now...  do you think it was little guys buying TLS after yesterday's Trujillo-induced debacle? I would bet not.

At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index (XSO) rose by 0.80 points (0.03%), finishing at 2559.00 points. The major winners in the "pop-guns" were -

  • Emperor Mines (EMP), +$0.055 (20.37%) to $0.325 on volume of 240,000 shares;
  • Schaffer Corporation (SFC), +$0.470 (10.85%) to $4.800 on volume of 46,000 shares; and
  • ERG (ERG), +$0.010 (7.69%) to $0.140 on volume of 7.4m shares; and
  • Multiemedia (MUL), +$0.001 (7.69%) to $0.014 on volume of 14.79m shares; and
  • A.B.C. Learning Centres (ABS), +$0.430 (6.42%) to $7.130 on volume of 3.24m shares.

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

  • Austral Coal (AUO), -$0.100 (8.55%) to $1.070 on volume of 3,000 shares;
  • Hardman Resources (HDR), -$0.145 (7.82%) to $1.710 on volume of 10.48m shares; and
  • Lynas Corporation (LYC), -$0.010 (7.14%) to $0.130 on volume of 306,000 shares; and
  • Antares Energy (AZZ), -$0.025 (5.43%) to $0.435 on volume of 534,000 shares; and
  • Centennial Coal Company (CEY), -$0.170 (4.53%) to $3.580 on volume of 2.1m shares.
Back to what I was saying above about deteriorating breadth/internals: notice how the index percentage-changes line up in order of market capitalisation? ASX20 > ASX50 > ASX100 > ASX200 > ASX300 > All Ords > MidCaps > Small Ords. The same is broadly true of the index advancer'decliners stats. In other words, they're Circling the Wagons.
Index Changes
XAOAll Ordinaries4560.215.30.34%627.48m
XTLS&P/ASX 202501.416.90.68%0
XFLS&P/ASX 504540.321.50.48%311.94m
XTOS&P/ASX 1003755.715.70.42%427.77m
XJOS&P/ASX 2004621.117.90.39%513.63m
XKOS&P/ASX 3004611.817.60.38%0
XMDS&P/ASX Mid-Cap 504575.83.50.08%0
XSOS&P/ASX Small Ordinaries25590.80.03%162.79m

All Ordinaries Market Internals

Market Breadth
Advancing Volume54.12m129.06m177.36m229.1776.98367.75
Declining Volume17.35m101.07m138.32m170.6358.03293.51

S&P/ASX200 GICS Sector Indices

The top sector for the day was XXJ ASX200 Financials ex Property Trusts which gained 1.09% to 5753.60 points. The sector was helped by

  • Australand Property Group (ALZ), +$0.085 (4.44%) to $2.000 on volume of 2.69m shares;
  • SFE Corporation (SFE), +$0.430 (3.12%) to $14.200 on volume of 334,000 shares;
  • QBE Insurance Group (QBE), +$0.410 (2.17%) to $19.320 on volume of 2.37m shares;
  • Macquarie Bank (MBL), +$1.450 (2.12%) to $69.950 on volume of 784,000 shares; and
  • Adelaide Bank (ADB), +$0.220 (1.72%) to $12.990 on volume of 147,000 shares.

Second in the sector leadership stakes was XFJ Financials which gained 0.94% to 5551.90 points (this is the last time you wil lsee this index - it is being deleted from the RantBase tonight). The sector leaders were the same as for XXJ (as usual) -

  • Australand Property Group (ALZ), +$0.085 (4.44%) to $2.000 on volume of 2.69m shares;
  • SFE Corporation (SFE), +$0.430 (3.12%) to $14.200 on volume of 334,000 shares;
  • QBE Insurance Group (QBE), +$0.410 (2.17%) to $19.320 on volume of 2.37m shares;
  • Macquarie Bank (MBL), +$1.450 (2.12%) to $69.950 on volume of 784,000 shares; and
  • Bunnings Warehouse Property Trust (BWP), +$0.040 (1.9%) to $2.150 on volume of 722,000 shares.

The bronze today went to XSJ Consumer Staples which gained 0.80% to 5987.60 points. The sector was led by

  • Ridley Corporation (RIC), +$0.035 (2.56%) to $1.400 on volume of 1.29m shares;
  • Futuris Corporation (FCL), +$0.030 (1.57%) to $1.940 on volume of 1.4m shares;
  • Woolworths (WOW), +$0.220 (1.28%) to $17.390 on volume of 2.21m shares;
  • Foster's Group (FGL), +$0.060 (1.04%) to $5.820 on volume of 5.83m shares; and
  • Burns, Philp & Company (BPC), -$0.000 (0%) to $1.115 on volume of 2.31m shares.

The worst-performed sector today was XEJ Energy which lost 1.06% to 9803.80 points. The sector was dragged lower by the drop in Woodside (which dominates the index by virtue of its market cap - 5x bigger than the nearest index component) but the top 5 percentage declienrs were 

  • Hardman Resources (HDR), -$0.145 (7.82%) to $1.710 on volume of 10.48m shares;
  • Tap Oil (TAP), -$0.110 (4.31%) to $2.440 on volume of 646,000 shares;
  • Roc Oil Company (ROC), -$0.090 (3.63%) to $2.390 on volume of 478,000 shares;
  • Oil Search (OSH), -$0.030 (0.94%) to $3.170 on volume of 7.22m shares; and
  • Caltex Australia (CTX), -$0.190 (0.93%) to $20.320 on volume of 264,000 shares.

Just in front of last place on the sector table was XHJ Healthcare which lost 0.43% to 6098.20 points. The sector was pulled down by

  • Chemeq (CMQ), -$0.030 (2.93%) to $0.995 on volume of 231,000 shares;
  • Peptech (PTD), -$0.040 (2.82%) to $1.380 on volume of 636,000 shares;
  • Ventracor (VCR), -$0.025 (2.17%) to $1.125 on volume of 189,000 shares;
  • Sonic Healthcare (SHL), -$0.300 (2.07%) to $14.210 on volume of 1.09m shares; and
  • Resmed Inc (RMD), -$0.070 (1.23%) to $5.600 on volume of 771,000 shares.
Sector Indices
CodeGICS SectorClose+/-%Volume
XXJASX200 Financials ex Property Trusts5753.662.11.09%55.61m
XSJConsumer Staples5987.647.40.8%22.79m
XIJInformation Technology443.42.20.5%9.2m
XPJProperty Trusts1862.67.50.4%75.81m
XDJConsumer Discretionary22306.70.3%26.92m

All Ordinaries Major Movers

All Ords Volume Leaders
TLSTelstra Corporation4.0200%144.78m
MPRMacquarie Prologis Trust1.180.010.85%15.42m
MGQMacquarie Goodman Group4.2800%15.31m
BHPBHP Billiton21.42-0.11-0.51%11.2m
LHGLihir Gold2-0.06-2.91%10.55m
All Ords Percentage Gainers
PSGPalm Springs0.050.0125%1.52m
EMPEmperor Mines0.330.0620.37%240009
SFCSchaffer Corporation4.80.4710.85%45689
VBAVirgin Blue Holdings1.820.158.98%2.7m
All Ords Percentage Decliners
ADGAdtrans Group2.92-0.29-9.03%20434
CLTCellnet Group1.01-0.1-9.01%119306
HDRHardman Resources1.71-0.15-7.82%10.48m
AZZAntares Energy0.44-0.03-5.43%534350
CEYCentennial Coal Company3.58-0.17-4.53%2.1m

Elsewhere in the Region...

Regional Indices
New ZealandNZSE503334.75923.110.7%21.71m
JapanNikkei 22514132.8741.10.29%0
SingaporeStraits Times2249.859.360.42%0
Hong KongHang Seng14647.1919.780.14%108.75m
MalaysiaKLSE Comp893.39-0.94-0.11%0