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Yesterday, I mentioned that everything looked hunky-dory if you were one of those folks who thinks that everything stops at 4:05 p.m. - whereas if you were one of those folks who watches what happens after the cash close, you saw some definite weakness in the SPI in the immediate aftermath of the cash close.
Given the relatively mild decline in the US overnight, you might have thought that yesterday's late-afternoon SPI was a "misleading indicator", but frankly the money that moves after the market knows pretty much where they want the thing to go.
For a hint as to how well they manage the perceptions of the nuffnuffs, ask yourself how it is that Telstra has a 7% yield and is trading at 10.8x trailing earnings... and yet everyone is being encouraged to talk it down.
I tells ya, T3 is going to be one of those ones where you back up the truck while everyone around you thinks "this guy's off his nut buying into that piece of shit" - while they put dough into NAB and other 'safe' stocks with a lower yield, hidden balance sheet distress and no growth prospects. You know the type - people who think that Westfield is the next Westfield, and that CSL is the next CSL. Overseas they think that Microsoft is the next Microsoft, and Coke is the next Coke.
I've made it clear that Sol Trujillo is predestined to failure (because he's an idiot), and will eventually laugh all the way to the bank with a massive golden parachute. That said, you could put the real Manuel (from Fawlty Towers) in charge of a cash machine like TLS and even he couldn't screw it up. A prediction: Trujillo wil leave before he is more than 60% through his contract tenure.
(Note - that didn't come from my little bird: however the fact that Rumsfeld is going to be replace within two months - and that Cheney will reture at the end of this year - did.)
Anyhow - you can bet that smart leveraged money will be up to its armpits in TLS calls well before the listing date of T3, particularly if the listing is done via instalment receipts. It might even be a time when it's worth bothering with the SFE's single-stock futures...
Major Market Indices
The broad market - the ASX All Ordinaries (XAO) - fell by 23.50 points (-0.52%), finishing at 4538.70 points. The opened at what turned out to be the high of the day (4562.20) closed at its low (4538.7).
Total volume traded on the ASX was 855 million units, 16.0% below its 10-day average. Of the 490 stocks in the index, 191 fell while 83 managed a gain. Volume was tilted in favour of the losers by a margin of 3.4:1, with 278.53million shares traded in losers while 82.47million 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 24.80 points (-0.54%), finishing at 4587.10 points.
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - fell by 14.50 points (-0.59%), finishing at 2455.60 points. Within the index members, there were only 3 that managed a gain, and 15 losers. Total volume in rising issues within the ASX20 amounted to a paltry 8.66m units while volume in the losers totalled 71.63m units.
The three winners in the "big guns" were -
- Westfield Group (WDC), +$0.190 (1.12%) to $17.100 on volume of 5.53m shares;
- Coles Myer Ltd (CML), +$0.040 (0.4%) to $10.070 on volume of 1.93m shares;
- St George Bank (SGB), +$0.040 (0.14%) to $28.210 on volume of 1.2m shares.
The following stocks made up the biggest percentage losers in the big-guns:
- Alumina (AWC), -$0.150 (2.15%) to $6.840 on volume of 3.27m shares;
- National Australia Bank (NAB), -$0.44 (1.38%) to $31.34 on volume of 3.14m shares;
- Macquarie Bank (MBL), -$0.90 (1.34%) to $66.05 on volume of 1.88m shares;
- BHP Billiton (BHP), -$0.27 (1.23%) to $21.65 on volume of 16.76m shares;
- Rinker Group (RIN), -$0.15 (0.93%) to $15.91 on volume of 955,000 shares.
At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index (XSO) fell by 15.60 points (-0.60%), finishing at 2564.70 points. The major winners in the "pop-guns" were -
- Austral Coal (AUO), +$0.140 (10.37%) to $1.490 on volume of 8,000 shares;
- Volante Group (VGL), +$0.050 (7.14%) to $0.750 on volume of 3.71m shares; and
- Cellestis (CST), +$0.210 (7%) to $3.210 on volume of 205,000 shares; and
- Lynas Corporation (LYC), +$0.010 (6.25%) to $0.170 on volume of 711,000 shares; and
- SDI (SDI), +$0.030 (3.73%) to $0.835 on volume of 153,000 shares.
The losingest-little-guys for the session were (in order of decline):
- Sydney Gas Ltd (SGL), -$0.140 (30.43%) to $0.320 on volume of 10.03m shares;
- Virotec International (VTI), -$0.075 (10.27%) to $0.655 on volume of 240,000 shares; and
- Orbital Corporation (OEC), -$0.010 (9.09%) to $0.100 on volume of 184,000 shares; and
- Perilya (PEM), -$0.075 (7.73%) to $0.895 on volume of 924,000 shares; and
- Sirtex Medical (SRX), -$0.150 (7.5%) to $1.850 on volume of 21,000 shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 4538.7 | -23.5 | -0.52% | 445.82m |
| XTL | S&P/ASX 20 | 2455.6 | -14.5 | -0.59% | 0 |
| XFL | S&P/ASX 50 | 4488.1 | -24.6 | -0.55% | 181.28m |
| XTO | S&P/ASX 100 | 3725.8 | -20.2 | -0.54% | 287.35m |
| XJO | S&P/ASX 200 | 4587.1 | -24.8 | -0.54% | 361.33m |
| XKO | S&P/ASX 300 | 4579.4 | -25.1 | -0.55% | 0 |
| XMD | S&P/ASX Mid-Cap 50 | 4639.3 | -22.9 | -0.49% | 0 |
| XSO | S&P/ASX Small Ordinaries | 2564.7 | -15.6 | -0.6% | 128.3m |
All Ordinaries Market Internals
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 3 | 27 | 49 | 83 | 39 | 325 |
| Declines | 15 | 58 | 115 | 191 | 104 | 565 |
| Advancing Volume | 8.66m | 52.07m | 65.44m | 82.47m | 20.89m | 223.58m |
| Declining Volume | 71.63m | 192.52m | 236.02m | 278.53m | 77.38m | 491.33m |
S&P/ASX200 GICS Sector Indices
The top sector for the day was XUJ Utilities which gained 0.65% to 5491.90 points. The sector was helped by
- Energy Developments (ENE), +$0.090 (2.24%) to $4.100 on volume of 535,000 shares;
- Diversified Utility And Energy Trusts (DUE), +$0.050 (2%) to $2.550 on volume of 252,000 shares;
- Alinta (ALN), +$0.090 (0.84%) to $10.830 on volume of 239,000 shares;
- Australian Gas Light Company (AGL), +$0.100 (0.61%) to $16.400 on volume of 1.3m shares; and
- Australian Pipeline Trust (APA), -$0.000 (0%) to $3.910 on volume of 114,000 shares.
Second in the sector leadership stakes - and the only other sector to register a gain for the session - was XPJ Property Trusts which gained 0.29% to 1878.60 points. The sector leaders were -
- Centro Properties Group (CNP), +$0.090 (1.45%) to $6.290 on volume of 1.35m shares;
- Westfield Group (WDC), +$0.190 (1.12%) to $17.100 on volume of 5.53m shares;
- Macquarie Prologis Trust (MPR), +$0.010 (0.85%) to $1.190 on volume of 1.13m shares;
- Ing Industrial Fund (IIF), +$0.010 (0.45%) to $2.240 on volume of 847,000 shares; and
- Macquarie Ddr Trust (MDT), +$0.005 (0.43%) to $1.160 on volume of 2.12m shares.
The worst-performed sector today was XIJ Information Technology which lost 1.47% to 435.20 points. The sector was dragged lower by
- MYOB (MYO), -$0.055 (4.85%) to $1.080 on volume of 402,000 shares;
- Infomedia Ltd (IFM), -$0.010 (2.04%) to $0.480 on volume of 195,000 shares;
- Computershare (CPU), -$0.120 (1.76%) to $6.700 on volume of 902,000 shares; and
- IRESS Market Technology (IRE), -$0.030 (0.66%) to $4.510 on volume of 191,000 shares.
Just in front of last place on the sector table was XMJ Materials which lost 1.09% to 8739.50 points. The sector was pulled down by
- Lihir Gold (LHG), -$0.130 (5.8%) to $2.110 on volume of 16.76m shares;
- Newcrest Mining (NCM), -$0.770 (3.43%) to $21.650 on volume of 1.7m shares;
- Great Southern Plantations (GTP), -$0.110 (3.42%) to $3.110 on volume of 1.23m shares;
- Aquarius Platinum (AQP), -$0.350 (3.05%) to $11.110 on volume of 71,000 shares; and
- Kimberley Diamond Company (KIM), -$0.030 (2.19%) to $1.340 on volume of 797,000 shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XUJ | Utilities | 5491.9 | 35.7 | 0.65% | 3.18m |
| XPJ | Property Trusts | 1878.6 | 5.5 | 0.29% | 55.29m |
| XTJ | Telecommunications | 1390.8 | -1.5 | -0.11% | 26.23m |
| XSJ | Consumer Staples | 5864.6 | -10.4 | -0.18% | 16.87m |
| XFJ | Financials | 5408.2 | -20.5 | -0.38% | 96.21m |
| XEJ | Energy | 10574.1 | -40.3 | -0.38% | 27.07m |
| XDJ | Consumer Discretionary | 2218.2 | -12 | -0.54% | 20.02m |
| XXJ | ASX200 Financials ex Property Trusts | 5551.3 | -31.6 | -0.57% | 45.09m |
| XNJ | Industrials | 5246.7 | -30.4 | -0.58% | 51.56m |
| XHJ | Healthcare | 6085.4 | -49.5 | -0.81% | 10.36m |
| XMJ | Materials | 8739.5 | -95.9 | -1.09% | 99.24m |
| XIJ | Information Technology | 435.2 | -6.5 | -1.47% | 2.41m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TLS | Telstra Corporation | 3.76 | -0.01 | -0.27% | 24.16m |
| LHG | Lihir Gold | 2.11 | -0.13 | -5.8% | 16.76m |
| BHP | BHP Billiton | 21.65 | -0.27 | -1.23% | 16.76m |
| MIG | Macquarie Infrastructure Group | 3.47 | -0.1 | -2.8% | 14.89m |
| HDR | Hardman Resources | 1.77 | -0.08 | -4.32% | 13.38m |
| OXR | Oxiana | 1.45 | -0.03 | -2.03% | 10.83m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| PBT | Prana Biotechnology | 0.23 | 0.04 | 17.95% | 280843 |
| CNT | Centamin Egypt | 0.49 | 0.04 | 7.78% | 269550 |
| VGL | Volante Group | 0.75 | 0.05 | 7.14% | 3.71m |
| CST | Cellestis | 3.21 | 0.21 | 7% | 205071 |
| LYC | Lynas Corporation | 0.17 | 0.01 | 6.25% | 710544 |
All Ords Percentage Decliners
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| SGL | Sydney Gas Ltd | 0.32 | -0.14 | -30.43% | 10.03m |
| VTI | Virotec International | 0.66 | -0.08 | -10.27% | 240312 |
| PEM | Perilya | 0.9 | -0.08 | -7.73% | 923997 |
| UNW | Unwired Group | 0.43 | -0.04 | -7.61% | 328777 |
| SLX | Silex Systems | 2.33 | -0.17 | -6.8% | 398966 |
Elsewhere in the Region...
Regional Indices
| Country | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| New Zealand | NZSE50 | 3196.716 | 11.44 | 0.36% | 30.04m |
| Japan | Nikkei 225 | 15778.86 | 40.16 | 0.26% | 0 |
| Korea | KOSPI | 1336.48 | 3.25 | 0.24% | 478300 |
| Singapore | Straits Times | 2327.6 | -3.8 | -0.16% | 0 |
| Hong Kong | Hang Seng | 14902.31 | -82.09 | -0.55% | 103.08m |
| Malaysia | KLSE Comp | 899.66 | 2.65 | 0.3% | 0 |
