Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.
I've been a bit naughty lo these past six days - after my birfday on Feb the Turd, I decided to take a very little break in order to try and get this bloody proposal to buy InvestorWeb finished... but further research shows that in all likelihood (with key personnel on rumoured to be leaving) that it might be wise to look away and not bother trying to get a marketing boost for a European version. All I would be buying would be rights to say "for ten years blah blah blah" instead of "We're smart, listen to us and you'll do alright."
Anyhow... the market has been going in the right (for Toot-Ranting) direction... dropping nicely since I declared the rally over. Even with today's interesting shapes, the Ords is almost 200 points lower that it was when I made the declaration, and the declaration did not come into force until the first overbought thereafter. By Set's unholy chalfonts, that was spot on...
I've mentioned before that I am mightily chary of these periods in which indices slam upwards with no catalyst. Short-squeezes that originate in the thin trading of the mid-session hours are always to be viewed as suspect.
The one thing that is preventing a total meltdown - here and in the US - is the existence of bears, not bulls. The clique (or claque) that views financial markets as their playthings does not like to have stragglers along with them for the big directional moves that they alone feel entitled to generate. Bears (the stock market type, in any case) are nervy critters, but the advent of easier index shorting and other means of speculation on market direction has meant that there has been an influx of new, dumb bears.
Call them Ursus Nuff-Nuffius. The Nuff-nuff bear. They take their bearish cues from the journalistic mainswamp - a drum beat of bad tidings from the hacks who regurgitate press releases, and Ursus Nuffnuffius is ready to 'take advantage' of the bearish scene... on the day of the low.
It has been ever thus - people who can't analyse a stock (or a market) to save themselves, take their cues from the profession which has no talent other than (sometimes) that they write reasonably well. As Michael Crichton's very interesting 2005 piece on complexity theory details, journalists are harbingers of idiocy; why on earth would you listen to them when there is now a world of almost-free information out there to take advantage of?
Having said that, notice from the left sidebar that your beloved Rant has aligned itself (to some small extent) with the aforementioned servants of Set; we're part of Forbes blogring now. I hope that - like other blogs in the ring -we don't become infected with the journalistic disease - describing things that have already happened as if giving insight. That is the path to ruin.
ajor Market Indices
The broad market - the All Ordinaries (XAO) - reversed from early weakness, rising 107 points from its mid-session low to register a closing gain of 66.3 points (1.18%). the closing print, near as I can make out, was 5669.4 points. The index hit an intraday high of 5676.6 at 3:51 pm, while the low for the day was 5583.4 - set at 12:46 pm Sydney time. Of the 107 point move from low to high, two-thirds of it occurred in one hour... that, gentle reader, was short-covering.
Total volume traded on the ASX was 1.35 billion units, well below its 10-day average - hence the ability to generate a squeeze. The ASX's daily listing of all stocks included 1394 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 451 issues rose, with volume in rising issues totalling 816.5 million units. Conversely (or even contrariwise), 642 stocks were dragged below the Plimsoll line, with aggregate volume traded of 372.6 million shares.
Of the 478 All Ordinaries components, 203 rose while 203 fell. Volume was tilted in favour of the gainers by a margin of 2.4:1, with 510.52 million shares traded in gainers while 214.64 million 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) - managed a solid gain, adding 70.5 points (1.27%), closing out the session at 5608.1 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 5669.40 | 66.30 (1.2%) |
| ASX 50 | 5446.00 | 76.50 (1.4%) |
| ASX 200 | 5608.10 | 70.50 (1.3%) |
| ASX 300 | 5616.20 | 68.40 (1.2%) |
| ASX Mid-Cap 50 | 5762.90 | 45.20 (0.8%) |
| ASX Small Ordinaries | 3349.20 | 15.90 (0.5%) |
| ASX 20 | 3091.50 | 45.20 (1.5%) |
| ASX 100 | 4536.10 | 59.40 (1.3%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - performed solidly, in moving up 45.2 points (1.48%), closing out the session at 3091.5 points.
Among the 20 big guns, 17 index components finished to the upside, and of the rest, 4 closed lower for the session. The 21 stocks which make up the index traded a total of 187.2 million units; 17 index components rose, with rising volume amounting to 175.52 million shares, while the 4 decliners had volume traded totalling 11.68 million units. The major percentage gainers within the index were
- Woodside Petroleum Limited (WPL), +$2.26 (5.15%) to $46.18 on volume of 2.1 million shares;
- Rio Tinto Limited (RIO), +$5.83 (4.79%) to $127.60 on volume of 2.4 million shares;
- Westfield Group (WDC), +$0.60 (3.35%) to $18.50 on volume of 8.9 million shares;
- Telstra (Installment Receipts) (TLSCA), +$0.09 (3.06%) to $3.03 on volume of 32.2 million shares; and
- BHP Billiton Limited (BHP), +$1.03 (2.87%) to $36.88 on volume of 13.2 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- CSL Limited (CSL), -$1.7 (4.75%) to $34.10 on volume of 2.1 million shares;
- Woolworths Limited (WOW), -$0.55 (1.96%) to $27.55 on volume of 4 million shares;
- Wesfarmers Limited (WES), -$0.57 (1.51%) to $37.15 on volume of 1.8 million shares; and
- Macquarie Group Limited (MQG), -$0.23 (0.38%) to $59.85 on volume of 3.8 million shares.
At the other end of the market-cap spectrum lie the denizens of the ASX Small Ordinaries (XSO) - the place where non-mania excess returns lie. The small end of the market significantly underperformed its large-cap counterpart. The Small Ords advanced by under a percent, adding 15.9 points (0.48%), closing out the session at 3349.2 points.
Among the stocks that make up the Small Caps index, 94 index components finished to the upside, and of the rest, 83 closed lower for the session.
The 192 stocks which make up the index traded a total of 254.72 million units: volume in the 94 gainers totalling 137.19 million shares, with trade totalling 107.81 million units in the index's 83 declining components. The major percentage gainers within the index were- Credit Corp Group Limited (CCP), +$0.26 (28.02%) to $1.17 on volume of 7.8 million shares;
- Rubicon America Trust (RAT), +$0.06 (20.37%) to $0.33 on volume of 5.4 million shares;
- Tishman Speyer Office Fund (TSO), +$0.20 (15.38%) to $1.50 on volume of 6.5 million shares;
- Gindalbie Metals Ltd (GBG), +$0.08 (10.46%) to $0.85 on volume of 6.8 million shares; and
- Nexus Energy Limited (NXS), +$0.15 (9.67%) to $1.65 on volume of 8.6 million shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- AED Oil Limited (AED), -$0.21 (15.44%) to $1.15 on volume of 6 million shares;
- JB Hi-Fi Limited (JBH), -$1.03 (8.15%) to $11.61 on volume of 2.5 million shares;
- Hastie Group Limited (HST), -$0.28 (7.45%) to $3.48 on volume of 675.3 thousand shares;
- The Reject Shop Limited (TRS), -$0.8 (7.41%) to $10.00 on volume of 71.1 thousand shares; and
- Customers Limited (CUS), -$0.01 (7.14%) to $0.09 on volume of 3.8 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 5669.4 | 66.3 | 1.18 | 779.6m |
| XFL | ASX 50 | 5446 | 76.5 | 1.42 | 301.4m |
| XJO | ASX 200 | 5608.1 | 70.5 | 1.27 | 630.6m |
| XKO | ASX 300 | 5616.2 | 68.4 | 1.23 | 738.9m |
| XMD | ASX Mid-Cap 50 | 5762.9 | 45.2 | 0.79 | 182.8m |
| XSO | ASX Small Ordinaries | 3349.2 | 15.9 | 0.48 | 254.7m |
| XTL | ASX 20 | 3091.5 | 45.2 | 1.48 | 187.2m |
| XTO | ASX 100 | 4536.1 | 59.4 | 1.33 | 484.2m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 17 | 63 | 64 | 202 | 94 | 451 |
| Declines | 4 | 31 | 31 | 203 | 83 | 642 |
| Advancing Volume | 175.5m | 351m | 352.1m | 505.1m | 137.2m | 816.5 million |
| Declining Volume | 11.7m | 91.5m | 91.5m | 214.6m | 107.8m | 372.6 million |
GICS Industry Indices
Among the 11 industry indices, 7 registered an advance for the session, the remaining 3 lost ground.
The best performing index was Property Trusts (XPJ), which added 55.5 points (3.12%) to 1835.6 points. The 20 stocks which make up the index traded a total of 129.57 million units; 15 index components rose, with rising volume amounting to 78.02 million shares, while the 4 decliners had volume traded totalling 36.79 million units. The major percentage gainers within the index were
- Tishman Speyer Office Fund (TSO), +$0.20 (15.38%) to $1.50 on volume of 6.5 million shares;
- Commonwealth Property Office Fund (CPA), +$0.10 (7.38%) to $1.46 on volume of 10.6 million shares;
- ING Office Fund (IOF), +$0.09 (6.98%) to $1.38 on volume of 4.6 million shares;
- APN/UKA European Retail Property Group (AEZ), +$0.04 (5.26%) to $0.80 on volume of 1.9 million shares; and
- Macquarie Office Trust (MOF), +$0.06 (5.15%) to $1.23 on volume of 7.7 million shares.
Second in the index leadership stakes was Materials (XMJ), which gained 362.6 points (2.62%) to 14198.7 points. The 42 stocks which make up the index traded a total of 106.55 million units; 31 index components rose, with rising volume amounting to 71.57 million shares, while the 8 decliners had volume traded totalling 21.97 million units. The major percentage gainers within the index were
- Macarthur Coal Limited (MCC), +$0.88 (8.22%) to $11.59 on volume of 1.1 million shares;
- Sally Malay Mining Limited (SMY), +$0.30 (7.79%) to $4.15 on volume of 1 million shares;
- Bluescope Steel Limited (BSL), +$0.52 (5.28%) to $10.37 on volume of 2.6 million shares;
- Sims Group Limited (SGM), +$1.49 (5%) to $31.29 on volume of 938.8 thousand shares; and
- Dyno Nobel Limited (DXL), +$0.10 (4.88%) to $2.15 on volume of 10.7 million shares.
The bronze medal for today goes to Utilities (XUJ), which climbed 146.2 points (2.54%) to 5895.4 points. The 11 stocks which make up the index traded a total of 18.09 million units; 8 index components rose, with rising volume amounting to 15.09 million shares, while the 2 decliners had volume traded totalling 2.59 million units. The major percentage gainers within the index were
- Duet Group (DUE), +$0.14 (4.67%) to $3.14 on volume of 958.1 thousand shares;
- AGL Energy Limited (AGK), +$0.50 (4.47%) to $11.69 on volume of 1.6 million shares;
- Babcock & Brown Infrastructure Group (BBI), +$0.05 (3.94%) to $1.32 on volume of 7.4 million shares;
- Sp Ausnet (SPN), +$0.03 (2.44%) to $1.26 on volume of 1.5 million shares; and
- Babcock & Brown Wind Partners Group (BBW), +$0.02 (1.1%) to $1.38 on volume of 1.8 million shares.
The worst-performed index for the session was Healthcare (XHJ), which dipped 346.2 points (3.75%) to 8880.2 points. The 9 stocks which make up the index traded a total of 17.46 million units; The 6 decliners had volume traded totalling 8.62 million units, and 3 index components rose, with rising volume amounting to 8.84 million shares, The major percentage decliners within the index were
- Cochlear Limited (COH), -$6 (9.23%) to $59.00 on volume of 1.5 million shares;
- CSL Limited (CSL), -$1.7 (4.75%) to $34.10 on volume of 2.1 million shares;
- ResMed Inc. (RMD), -$0.12 (2.53%) to $4.63 on volume of 2.6 million shares;
- Sigma Pharmaceuticals Ltd (SIP), -$0.02 (1.41%) to $1.40 on volume of 1.2 million shares; and
- Sonic Healthcare Limited (SHL), -$0.19 (1.2%) to $15.63 on volume of 1.2 million shares.
Just missing out on the wooden spoon was Consumer Staples (XSJ), which slid 84.8 points (1.09%) to 7709.6 points. The 10 stocks which make up the index traded a total of 22.99 million units; The 5 decliners had volume traded totalling 9.45 million units, and 5 index components rose, with rising volume amounting to 13.54 million shares, The major percentage decliners within the index were
- Woolworths Limited (WOW), -$0.55 (1.96%) to $27.55 on volume of 4 million shares;
- Wesfarmers Limited (WES), -$0.57 (1.51%) to $37.15 on volume of 1.8 million shares;
- Lion Nathan Limited (LNN), -$0.12 (1.31%) to $9.07 on volume of 893.3 thousand shares;
- ABB Grain Limited (ABB), -$0.06 (0.75%) to $7.94 on volume of 709.7 thousand shares; and
- Metcash Limited (MTS), -$0.01 (0.24%) to $4.14 on volume of 2 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XPJ | Property Trusts | 1835.6 | 55.5 | 3.12 | 130m |
| XMJ | Materials | 14198.7 | 362.6 | 2.62 | 107m |
| XUJ | Utilities | 5895.4 | 146.2 | 2.54 | 18m |
| XEJ | Energy | 13944 | 313.3 | 2.3 | 47m |
| XTJ | Telecommunications | 1618.9 | 32.3 | 2.04 | 109m |
| XNJ | Industrials | 5692 | 53.2 | 0.94 | 61m |
| XXJ | ASX200 Financials ex Property Trusts | 6040.9 | 51.4 | 0.86 | 73m |
| XDJ | Consumer Discretionary | 2310.9 | -0.1 | 0 | 45m |
| XIJ | Information Technology | 445.1 | -2 | -0.45 | 2m |
| XSJ | Consumer Staples | 7709.6 | -84.8 | -1.09 | 23m |
| XHJ | Healthcare | 8880.2 | -346.2 | -3.75 | 17m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TLS | Telstra Corporation Limited. | 4.59 | 0.08 | 1.77 | 66.9m |
| TLSCA | Telstra (Installment Receipts) | 3.03 | 0.09 | 3.06 | 32.2m |
| REU | Rubicon Europe Trust Group | 0.28 | 0.01 | 1.82 | 19.7m |
| AGM | Allegiance Mining NL | 1.05 | -0.01 | -0.95 | 18.7m |
| CNP | Centro Properties Group | 0.61 | 0.00 | 0 | 14.8m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CCP | Credit Corp Group Limited | 1.17 | 0.26 | 28.02 | 7.8m |
| RAT | Rubicon America Trust | 0.33 | 0.06 | 20.37 | 5.4m |
| TSO | Tishman Speyer Office Fund | 1.50 | 0.20 | 15.38 | 6.5m |
| AXQ | Allco Max Securities And Mortgage Trust | 0.25 | 0.03 | 11.11 | 647.7k |
| UGL | United Group Limited. | 12.05 | 1.16 | 10.65 | 4.8m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| AED | AED Oil Limited | 1.15 | -0.21 | -15.44 | 6m |
| NRT | Novogen Limited | 1.13 | -0.16 | -12.4 | 22k |
| CUV | Clinuvel Pharmaceuticals Limited | 0.30 | -0.04 | -11.76 | 4.7m |
| REX | Regional Express Holdings Limited | 1.27 | -0.16 | -11.19 | 198.2k |
| BGD | Boulder Steel Limited | 0.18 | -0.02 | -10 | 29.4k |
