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Well, it's not too early to say "I told you so." Specifically, the 'so' that I told you was yesterday's injunction that those who thought that 'buying the dip' was a sensible thing to do, were wrong. Today is the first wave of vindication of that view, and when last week's low is broken, there is a good chance of a rout.
As you probably well know, I have a slightly skew-whiff view of the financial markets. My view is that they are designed - from root to branch - to take as much money as possible off of the Great Unwashed, and to hand it to the sort of people who think that bribing politicians is Cricket.
And when the Great Unwashed get most of their financial information from the 'mainstream' (or as I prefer to call it, the 'mainswamp') press, it should come as no surprise that markets gyrate around like nobody knows what they're doing.
I should caveat that somewhat - some folks know exactly what they're doing (but they have nothing to do with the mainswamp, except to feed journalists stuff which helps their own book). Others are highly educated and numerate, and think they know what they're doing. But the overwhelming majority have the market equivalent of Tourette's. They are absolutely astonished that when journalists are all babbling about high Gold prices, all of a suddent Gold gets clobbered by 15% in a week. When journalists are all babbling about high Oil prices, Crude gets slammed down to the RantTarget of $57 (that was a while ago, of course) - and then when journalists start babbling about the possibility of weak oil prices, up she climbs back to the $70's.
Don't get me wrong - there are some folks who write about financial markets, and who call themselves journalists, who are right on top of their game. But those folks don't write for the mainswamp - and in fact they should stop using the term 'journalist' altogether. As Noam Chomsky observed (echoing my own views - Chomsky got there first, but my view was formed before I heard what he had said), the mainswamp press (and the mainswamp media generally) is not about truth, or accountability, or unveiling the sordid crap that goes on in the corridors of power. The mainswamp media is in the business of selling audiences to advertisers.
I had a slightly different view: thatthey were in the business of selling advertising. Chomsky's view is better.
And so long as the bulk of people have attention spans the length of a bee's willy, folks like me will just be considered crackpots. But that's OK - you'll never hear me say I'm not a crackpot, but you would show poor judgement if you thought me an idiot.
Major Market Indices
The broad market - the ASX All Ordinaries (XAO) - fell by 77.60 points (-1.53%), finishing at 5004.50 points - let's use theformal Rant terminology and refer to that as 5000-ish. The index hit an intraday high of 5082.10 (actually that's an artifact of yesterday's close - the traded open was more like 5050-ish). The session low was 4997.7, set at about 2:15 p.m.. After a wishy-washy futures-led bounce, the market came back in the closing stages and finished pretty much at its low. (The SPI actually set a new session low after the cash market closed, but only by a single point - 5028 versus the earlier low of 5029).
Total volume traded on the ASX was 1.05 billion units, 7.8% above its 10-day average. Of the 489 active stocks in the index (i.e., those that had non-zero volume for the day), 229 fell while just 51 managed a gain - sort of the flip-side of yesterday's exuberant Labrador puppy. Volume was tilted in favour of the losers by a margin of 6.4:1, with 494.34million shares traded in losers while 77.14million 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 83.90 points (-1.64%), finishing at 5036.10 points.
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - fell by a nice round 50.00 points (-1.79%), finishing at 2736.00 points. Within the index members, the internals were a reflection of yesterday's: there were only 2 index components that rose, and 18 losers. Total volume in rising issues within the ASX20 amounted to 32.81m shares, while volume in the losers totalled 84.25m units.
The major winners in the "big guns" were -
- Telstra Corporation (TLS), +$0.020 (0.53%) to $3.820 on volume of 29.06m shares; and
- Coles Myer Ltd (CML), +$0.020 (0.17%) to $11.650 on volume of 3.75m shares.
The following stocks made up the biggest percentage losers in the big-guns:
- Rinker Group (RIN), -$0.750 (4.15%) to $17.310 on volume of 6.56m shares;
- Rio Tinto (RIO), -$2.39 (2.99%) to $77.50 on volume of 1.49m shares;
- BHP Billiton (BHP), -$0.83 (2.88%) to $28.02 on volume of 18.98m shares;
- Alumina (AWC), -$0.16 (2.31%) to $6.78 on volume of 7.09m shares;
- Commonwealth Bank Of Australia (CBA), -$0.98 (2.22%) to $43.12 on volume of 4.5m shares.
At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index (XSO) was slightly less-badly affected in percentage terms, falling by 42.30 points (-1.46%), finishing at 2853.90 points. The major winners in the shallow end of the pool were -
- Kresta Holdings (KRS), +$0.010 (6.25%) to $0.170 on volume of 298,000 shares;
- Sai Global (SAI), +$0.140 (4.29%) to $3.400 on volume of 353,000 shares; and
- Jubilee Mines (JBM), +$0.310 (4.25%) to $7.610 on volume of 996,000 shares; and
- ERG (ERG), +$0.004 (4.17%) to $0.100 on volume of 2.88m shares; and
- Macmahon Holdings (MAH), +$0.030 (4.17%) to $0.750 on volume of 446,000 shares.
The losingest-little-guys for the session were (in order of decline):
- Multiemedia (MUL), -$0.001 (11.11%) to $0.008 on volume of 14.57m shares;
- Atlas Group Holdings (AHS), -$0.075 (8.06%) to $0.855 on volume of 785,000 shares; and
- Nylex (NLX), -$0.004 (7.69%) to $0.048 on volume of 13.06m shares; and
- Zinifex (ZFX), -$0.860 (7.5%) to $10.600 on volume of 48.42m shares; and
- Village Life Ltd (VLL), -$0.010 (7.14%) to $0.130 on volume of 356,000 shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 5004.5 | -77.6 | -1.53% | 621.93m |
| XTL | S&P/ASX 20 | 2736 | -50 | -1.79% | 0 |
| XFL | S&P/ASX 50 | 4930.4 | -82.6 | -1.65% | 228.06m |
| XTO | S&P/ASX 100 | 4090.1 | -68.2 | -1.64% | 388.66m |
| XJO | S&P/ASX 200 | 5036.1 | -83.9 | -1.64% | 514.15m |
| XKO | S&P/ASX 300 | 5033.2 | -82.9 | -1.62% | 0 |
| XMD | S&P/ASX Mid-Cap 50 | 5069.4 | -81.9 | -1.59% | 0 |
| XSO | S&P/ASX Small Ordinaries | 2853.9 | -42.3 | -1.46% | 199.87m |
All Ordinaries Market Internals
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 2 | 11 | 18 | 51 | 30 | 281 |
| Declines | 18 | 78 | 152 | 229 | 124 | 744 |
| Advancing Volume | 32.81m | 59.91m | 65.28m | 77.14 | 27.8 | 184.58 |
| Declining Volume | 84.25m | 310.56m | 426.57m | 494.34 | 163.88 | 732.7 |
S&P/ASX200 GICS Sector Indices
No sector rose today. Boo hoo. Thus, we don't look at the 'best performed' sector components.The worst-performed sector today was XMJ Materials which lost 3.02% to 10501.10 points. The sector was dragged lower by
- Zinifex (ZFX), -$0.860 (7.5%) to $10.600 on volume of 48.42m shares;
- Lihir Gold (LHG), -$0.230 (7.1%) to $3.010 on volume of 22.04m shares;
- Minara Resources (MRE), -$0.160 (6.64%) to $2.250 on volume of 978,000 shares;
- Oxiana (OXR), -$0.170 (5.33%) to $3.020 on volume of 19.72m shares; and
- Portman (PMM), -$0.310 (5.3%) to $5.540 on volume of 10,000 shares.
Just in front of last place on the sector table was XEJ Energy which lost 1.78% to 12327.40 points. The sector was pulled down by
- Hardman Resources (HDR), -$0.070 (4.07%) to $1.650 on volume of 7.49m shares;
- Tap Oil (TAP), -$0.070 (3.61%) to $1.870 on volume of 1.17m shares;
- Worleyparsons (WOR), -$0.600 (2.79%) to $20.900 on volume of 938,000 shares;
- Arc Energy (ARQ), -$0.045 (2.71%) to $1.615 on volume of 709,000 shares; and
- Woodside Petroleum (WPL), -$0.930 (2.06%) to $44.320 on volume of 1.36m shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XTJ | Telecommunications | 1333.7 | -2.3 | -0.17% | 35.88m |
| XPJ | Property Trusts | 1969.9 | -10.5 | -0.53% | 82.13m |
| XSJ | Consumer Staples | 6207.6 | -51.8 | -0.83% | 29.03m |
| XDJ | Consumer Discretionary | 2334.3 | -19.7 | -0.84% | 38.7m |
| XUJ | Utilities | 5819.6 | -52.3 | -0.89% | 3.74m |
| XNJ | Industrials | 5425.8 | -65.6 | -1.19% | 64.1m |
| XHJ | Healthcare | 6486.4 | -93.9 | -1.43% | 8.52m |
| XIJ | Information Technology | 488 | -7.6 | -1.53% | 6m |
| XXJ | ASX200 Financials ex Property Trusts | 6041.6 | -96.4 | -1.57% | 61.22m |
| XEJ | Energy | 12327.4 | -223.9 | -1.78% | 22.11m |
| XMJ | Materials | 10501.1 | -327.4 | -3.02% | 162.89m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| ZFX | Zinifex | 10.60 | -0.86 | -7.5% | 48.42m |
| TLS | Telstra Corporation | 3.82 | 0.02 | 0.53% | 29.06m |
| MAP | Macquarie Airports | 3.15 | -0.01 | -0.32% | 24.6m |
| LHG | Lihir Gold | 3.01 | -0.23 | -7.1% | 22.04m |
| OXR | Oxiana | 3.02 | -0.17 | -5.33% | 19.72m |
| BHP | BHP Billiton | 28.02 | -0.83 | -2.88% | 18.98m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| KRS | Kresta Holdings | 0.17 | 0.01 | 6.25% | 298400 |
| SAI | Sai Global | 3.40 | 0.14 | 4.29% | 353318 |
| JBM | Jubilee Mines | 7.61 | 0.31 | 4.25% | 996236 |
| ERG | ERG | 0.10 | 0.004 | 4.17% | 2.88m |
| MAH | Macmahon Holdings | 0.75 | 0.03 | 4.17% | 445865 |
All Ords Percentage Decliners
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CAG | Cape Range Wireless | 0.011 | -0.003 | -21.43% | 8.25m |
| AHS | Atlas Group Holdings | 0.86 | -0.08 | -8.06% | 785455 |
| NLX | Nylex | 0.048 | -0.004 | -7.69% | 13.06m |
| ZFX | Zinifex | 10.60 | -0.86 | -7.5% | 48.42m |
| LHG | Lihir Gold | 3.01 | -0.23 | -7.1% | 22.04m |
Elsewhere in the Region...
Regional Indices
| Country | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| New Zealand | NZSE50 | 3600.582 | -38.57 | -1.06% | 38.2m |
| Japan | Nikkei 225 | 15384.86 | -283.45 | -1.81% | -na- |
| Korea | KOSPI | 1301.62 | -7.42 | -0.57% | -na- |
| Singapore | Straits Times | 2385.59 | -21.66 | -0.9% | -na- |
| Hong Kong | Hang Seng | 15869.75 | -146.48 | -0.91% | 154.76m |
| Malaysia | KLSE Comp | 924.71 | -7.19 | -0.77% | -na- |
