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Bugger... it turns out that my prescience had shifted across the Tasman - because unlike the Strayan market, the Kiwis did the right thing and recovered from an early session tenelle-ing (it's not French, you have to ask Mav where it comes from). The Kiwi market closed down just 1.1% - well played, ay? Choice, bro.
Meanwhile, the Strayan market was busy getting the Gatorade Bottle of Doom up the Vord. (Again, not French. Again, you have to ask Mav... but you've probably guessed right).
A dozen declining days. On the twelfth day of carnage my true love sent to me... a fried trout fillet for tea.
It wasn't a fillet actually - it was what the Frogs call a pavé (which is also Froggish for paving stone), but it was trout. Yum.
But I digress: back to the bloodbath.
Sadly, the copybook was well blotted with a declaration that the thing looked primed to bounce - I was not to know that the majority of nuffie orders were sitting unprocessed in CommSec's trading queue (which had taken a holiday, but certainly not deliberately in order for the big boys to get their orders through). So all the nuffies who ought to have been washed out on the sluice down in the first half hour, were sitting and fidgeting and getting even more nervous. Then the CommSec engine started back up, and all those small lotters still sold anyway.
Honestly, that CommSec crowd ought to get its act together; they buy IWL at 20-odd times cash flow, and six months later the whole market goes to a big pile of hovno (not French - ask Filip), making their "Buy stockbrokers at premium prices" strategy look like it was hatched in a sheltered workshop.
I think it's fairly clear that, even if the US has an early downdraught tonight (Oz time), it will bounce, and the Kiwis will look smart tomorrow. The only thing that hadn't happened during the previous 11 sessions was that the Strayan market didn't really have a volume blowoff. You really expect volume to explode at genuine swing lows, and for downside volume to be several times as great as upside volume. Well, today it was there in spades. 100:1 downside/upside, if my maths doesn't fail me.
Still and all, I expect the overwhelming bulk of today's decline to be recovered tomorrow. Not just because that would put today's long side call back into the black (it was a crap call, as it turned out, and even if it profits from here that doesn't make it any less crap), but because everything is reading oversold (and now we have a massive "Dumb Money At Work" sign thanks to the volume blowoff).
The counter argument to that, is that crashes invariably start from oversold: it is the time in the market where all contrarian logic is turned on its head. But buying deep oversold (even prior to a crash) is a better bet than selling deep oversold (even in a crash).
Major Market Indices
The broad market - the All Ordinaries (XAO) - slid pretty savagely, posting a loss of 408.9 points (7.26%), finishing at 5222 points. The index hit an intraday high of 5563.4 at 10:01 am (during the open), while the low for the day was 5222 - set at the close.
Total volume traded on the ASX was 2.85 billion units, 60% above its 10-day average. The ASX's daily listing of all stocks included 1658 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 59 issues rose, with volume in rising issues totalling 27.2 million units. Meanwhile, 1482 stocks were slammed against the wall and told not to move, with aggregate volume traded of 2.69 billion shares.
Of the 478 All Ordinaries components, 8 rose while 453 fell. Volume was tilted in favour of the losers by a margin of 76.1:1, with 19.38 million shares traded in gainers while 1.47 billion 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) - had an absolute shocker, but better than the All Ords - losing 393.6 points (7.05%), closing out the session at 5186.8 points.
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - was somewhat less affected than the broad market, sliding 207.2 points (6.73%), closing out the session at 2869.6 points.
Among the 20 big guns, the news was pretty dismal: not a single stock registered a gain for the session. A total of 332.21million units was traded in the losing index components.The following stocks were the worst-performed within the index:
- Rio Tinto Limited (RIO), -$12.75 (11.16%... YOWZA!) to $101.50 on volume of 4.2 million shares;
- Macquarie Group Limited (MQG), -$7.21 (10.97%) to $58.50 on volume of 5 million shares;
- Woodside Petroleum Limited (WPL), -$4.65 (10.22%) to $40.85 on volume of 3.9 million shares;
- AMP Limited (AMP), -$0.79 (9.24%) to $7.76 on volume of 8.4 million shares; and
- Telstra (Installment Receipts) (TLSCA), -$0.21 (7.75%) to $2.50 on volume of 109.9 million shares.
At the other end of the market-cap spectrum lie the denizens of the ASX Small Ordinaries (XSO) The small end of the market got absolutely hammered. A significantly worse day than its large-cap counterpart. The Small Ords got the biggest flogging I've seen in recent years, sliding 298.2 points (8.96%), closing out the session at 3029.9 points.
Among the stocks that make up the Small Caps index, 2 index components finished to the upside, and of the rest, 187 closed lower for the session.
The 192 stocks which make up the index traded a total of 496.3 million units: volume in the 2 gainers totalling 3.46 million shares, with trade totalling 491.65 million units in the index's 187 declining components. The major percentage gainers within the index were- Envestra Limited (ENV), +$0.01 (0.59%) to $0.85 on volume of 1.5 million shares; and
- APN News & Media Limited (APN), +$0.01 (0.2%) to $5.00 on volume of 1.9 million shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Centro Retail (CER), -$0.09 (29.51%) to $0.22 on volume of 18.1 million shares;
- Rubicon America Trust (RAT), -$0.15 (28.71%) to $0.36 on volume of 3.6 million shares;
- Cudeco Limited (CDU), -$0.85 (27.87%) to $2.20 on volume of 1.7 million shares;
- Bannerman Resources Limited (BMN), -$0.88 (27.67%) to $2.30 on volume of 538.1 thousand shares; and
- Pan Australian Resources Limited (PNA), -$0.24 (26.09%) to $0.68 on volume of 30.7 million shares.
Surely Centro can't fall any further unless it goes out of business, what?
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 5222 | -408.9 | -7.26 | 1523.2m |
| XFL | ASX 50 | 5053.6 | -366.7 | -6.77 | 518.9m |
| XJO | ASX 200 | 5186.8 | -393.6 | -7.05 | 1174.2m |
| XKO | ASX 300 | 5191.4 | -398.2 | -7.12 | 1353m |
| XMD | ASX Mid-Cap 50 | 5305.1 | -438 | -7.63 | 337.8m |
| XSO | ASX Small Ordinaries | 3029.9 | -298.2 | -8.96 | 496.3m |
| XTL | ASX 20 | 2869.6 | -207.2 | -6.73 | 332.2m |
| XTO | ASX 100 | 4204.2 | -311.4 | -6.9 | 856.7m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 0 | 1 | 1 | 8 | 2 | 59 |
| Declines | 21 | 99 | 100 | 452 | 187 | 1482 |
| Advancing Volume | 0m | 15.5m | 15.5m | 19.4m | 3.5m | 27.2 million |
| Declining Volume | 332.2m | 828.7m | 831.6m | 1.46b | 491.7m | 2.69 billion |
GICS Industry Indices
Among the 11 industry indices, the news was universally negative: not a single sector managed to break into the "Win" column.
Since none of the industry sectors registered a gain for the session, there is no point in burdening ourselves with the internal behaviour of advancing sectors... on to the losers.
The worst-performed index for the session was Energy (XEJ), which dipped 1365.2 points (10.1%) to 12149.4 points thanks to yet another down day in Crude. The 18 stocks which make up the index traded a total of 82.89 million units; The 18 decliners had volume traded totalling 82.89 million units, and volume in the lone rising index component was 0 million shares, The major percentage decliners within the index were
- AED Oil Limited (AED), -$0.62 (22.55%) to $2.13 on volume of 3.5 million shares;
- Paladin Energy Limited (PDN), -$1.06 (21.33%) to $3.91 on volume of 12.1 million shares;
- Arrow Energy NL (AOE), -$0.39 (20.42%) to $1.50 on volume of 8.8 million shares;
- Oil Search Limited (OSH), -$0.75 (16.7%) to $3.74 on volume of 12.1 million shares; and
- Beach Petroleum Limited (BPT), -$0.2 (14.39%) to $1.16 on volume of 15.3 million shares.
Just missing out on the wooden spoon was Materials (XMJ), which slid 1115.9 points (8.55%) to 11928.2 points. The 42 stocks which make up the index traded a total of 304.88 million units; The 42 decliners had volume traded totalling 304.88 million units, and volume in the lone rising index component was 0 million shares, The major percentage decliners within the index were
- Pan Australian Resources Limited (PNA), -$0.24 (26.09%) to $0.68 on volume of 30.7 million shares;
- Lynas Corporation Limited (LYC), -$0.25 (21.68%) to $0.89 on volume of 4.7 million shares;
- Sundance Resources Limited (SDL), -$0.05 (17.86%) to $0.23 on volume of 49.8 million shares;
- Timbercorp Limited (TIM), -$0.18 (17.82%) to $0.83 on volume of 4.5 million shares; and
- Kagara Zinc Limited (KZL), -$0.81 (17.38%) to $3.85 on volume of 2.5 million shares.
Third-to-last amongst the sector indices was Industrials (XNJ), which slid 399.5 points (6.86%) to 5422.6 points. The 30 stocks which make up the index traded a total of 113.76 million units; The 30 decliners had volume traded totalling 113.76 million units, and volume in the lone rising index component was 0 million shares, The major percentage decliners within the index were
- Seek Limited (SEK), -$1.27 (17.76%) to $5.88 on volume of 3.5 million shares;
- Boart Longyear Limited (BLY), -$0.33 (16.1%) to $1.72 on volume of 14.5 million shares;
- Macmahon Holdings Limited (MAH), -$0.17 (11.46%) to $1.28 on volume of 4 million shares;
- Boom Logistics Limited (BOL), -$0.16 (10.51%) to $1.32 on volume of 2.6 million shares; and
- Bradken Limited (BKN), -$0.7 (10.37%) to $6.05 on volume of 2.9 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XSJ | Consumer Staples | 7585.8 | -413.5 | -5.17 | 40m |
| XDJ | Consumer Discretionary | 2236.4 | -124.1 | -5.26 | 75m |
| XHJ | Healthcare | 8510 | -497.4 | -5.52 | 17m |
| XIJ | Information Technology | 440.2 | -25.9 | -5.56 | 4m |
| XTJ | Telecommunications | 1412.3 | -91.3 | -6.07 | 197m |
| XPJ | Property Trusts | 1667.2 | -112.2 | -6.31 | 163m |
| XUJ | Utilities | 5699.5 | -406.4 | -6.66 | 55m |
| XXJ | ASX200 Financials ex Property Trusts | 5919.1 | -428.4 | -6.75 | 122m |
| XNJ | Industrials | 5422.6 | -399.5 | -6.86 | 114m |
| XMJ | Materials | 11928.2 | -1115.9 | -8.55 | 305m |
| XEJ | Energy | 12149.4 | -1365.2 | -10.1 | 83m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TLSCA | Telstra (Installment Receipts) | 2.50 | -0.21 | -7.75 | 109.9m |
| TLS | Telstra Corporation Limited. | 4.06 | -0.21 | -4.92 | 79.7m |
| SDL | Sundance Resources Limited | 0.23 | -0.05 | -17.86 | 49.8m |
| OXR | Oxiana Limited | 2.61 | -0.47 | -15.26 | 45.2m |
| AGM | Allegiance Mining NL | 1.00 | -0.06 | -5.21 | 38.7m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CMJ | Consolidated Media Holdings Limited | 4.28 | 0.42 | 10.88 | 15.5m |
| VRLPA | Village Roadshow Limited (PA) | 2.80 | 0.10 | 3.7 | 10.1k |
| VGH | Vision Group Holdings Limited | 2.97 | 0.07 | 2.41 | 129.7k |
| SOL | Washington H Soul Pattinson & Company Limited | 7.99 | 0.09 | 1.14 | 50.1k |
| PRT | Prime Media Group Limited | 3.59 | 0.04 | 1.13 | 30.4k |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| MPS | MacarthurCook Property Securities Fund | 0.53 | -0.23 | -30 | 566.3k |
| CER | Centro Retail | 0.22 | -0.09 | -29.51 | 18.1m |
| RAT | Rubicon America Trust | 0.36 | -0.15 | -28.71 | 3.6m |
| CDU | Cudeco Limited | 2.20 | -0.85 | -27.87 | 1.7m |
| BMN | Bannerman Resources Limited | 2.30 | -0.88 | -27.67 | 538.1k |
