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Sometimes, the urgent need felt by financial journalists to explain a rise (or fall) in the market just gets silly. Today, the Australian market rose because of Citigroup, if the newswires are to be believed.
Not a bit of it. The US had a 3-day technical bounce off its recent lows, and the Australian market followed it with a lag. That, plus some slight fuel from by the nutty idea that a slower reading on producer prices meant that the Reserve Bank might be inclined not to raise interest rates. Those two things together were the primary drivers. The lack of results from the Iran gabfest over the weekend were not seen as increasing geopolitical tensions... add that in as a third leg. but Citigroups earnings were old news within minutes of their release - before the US marekt open on Friday. They did little for the US market, so why on earth would they add 3% to the ASX?
As drivers the ones I mention above really suck; as a motive for a market advance they are no more sensible than the 'It was Citigroup's earnings (you know, the earnings that didn't much move the DOW or the S&P, in which C is a component... but which moved the All Ords 3%)'.
So I guess you're left with the choice - ridicule journalists for plumping for a patently idiotic post hoc ergo propter hoc justification for the rise, or ridicule stock traders for a patently stupid motivation.
Or both... why the hell not?
Also, it was a theme that seems to have been restricted to the stock market - 90-day bills didn't react much, and nor did the $A. Smells like technical short-covering to me. It had the feel of a short-covering move - a decent-sized chunk of the move happened in the pre-market SPI (Friday night Australian time). AS I've said before, markets don't move like this as a result of committed buying - they move like this when shorts have their nuts in a vice.
And of course there was - yet again - the rotation (this time OUT of small caps and INTO big caps).
Major Market Indices
The broad market - the All Ordinaries (XAO) - surged a whopping 160.1 points (3.26%), finishing at 5075.4 points. The index hit an intraday high of 5073.9 at 3:51 pm, while the low for the day was 4915.3 - the prior day's closign level. The traded low - the lowest level set after the opening process - was at about 10:39 a.m., at 5004.6 points.
Total volume traded on the ASX was 1.25 billion units, 13.9% below its 10-day average. The ASX's daily listing of all stocks included 1361 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 618 issues rose, with volume in rising issues totalling 874.4 million units. Conversely (or even contrariwise), 451 stocks were losers for the day, with aggregate volume traded of 222.6 million shares. Odd considering the recent weakness in the indices, to have a breadth configuration more easily associated with a market top...
Of the 494 All Ordinaries components, 304 rose while 125 fell. Volume was tilted in favour of the gainers by a margin of 5.6:1, with 713.18 million shares traded in gainers while 127.59 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) - hurtled skyward to the tune of 171.4 points (3.54%), closing out the session at 5011.8 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 5075.40 | 160.10 (3.3%) |
| ASX 20 | 2832.40 | 104.00 (3.8%) |
| ASX 50 | 4927.80 | 180.70 (3.8%) |
| ASX 100 | 4063.40 | 144.70 (3.7%) |
| ASX 200 | 5011.80 | 171.40 (3.5%) |
| ASX 300 | 5005.50 | 168.40 (3.5%) |
| ASX Mid-Cap 50 | 4856.10 | 140.60 (3.0%) |
| ASX Small Ordinaries | 2848.30 | 44.80 (1.6%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - had a bit of a moonshot, stacking on 104 points (3.81%), closing out the session at 2832.4 points.
Among the 20 big guns, things were relatively upbeat: only one index component sought to rain on the bull's parade. The 20 stocks which make up the index traded a total of 136.64 million units; 19 index components rose, with rising volume amounting to 135.22 million shares, while the sole declining stock traded 1.43 million units. The major percentage gainers within the index were
- Stockland (SGP), +$0.37 (8.11%) to $4.93 on volume of 11 million shares;
- Suncorp-Metway Limited. (SUN), +$0.78 (6.33%) to $13.11 on volume of 2.9 million shares;
- Brambles Limited (BXB), +$0.41 (5.21%) to $8.28 on volume of 3.7 million shares;
- National Australia Bank Limited (NAB), +$1.21 (4.48%) to $28.22 on volume of 7.7 million shares; and
- St George Bank Limited (SGB), +$1.16 (4.42%) to $27.42 on volume of 1.6 million shares.
On the less salubrious side of the big-cap fence, perhaps the diminishing of Iran tensions made people think that the world would be less bathed in blood - CSL Limited (CSL) lost $0.29 (0.78%) to $36.76 on volume of 1.4 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 significantly underperformed its large-cap counterpart. The Small Ords performed solidly, in moving up 44.8 points (1.60%), closing out the session at 2848.3 points.
Among the stocks that make up the Small Caps index, 121 index components finished to the upside, and of the rest, 56 closed lower for the session.
The 195 stocks which make up the index traded a total of 325.05 million units: volume in the 121 gainers totalling 240.73 million shares, with trade totalling 66.18 million units in the index's 56 declining components. The major percentage gainers within the index were- Sundance Resources Limited (SDL), +$0.09 (38.64%) to $0.31 on volume of 85.3 million shares;
- Great Southern Limited (GTP), +$0.13 (24.51%) to $0.64 on volume of 2.1 million shares;
- Allco Finance Group Limited (AFG), +$0.09 (20.45%) to $0.53 on volume of 11.6 million shares;
- Kagara Zinc Limited (KZL), +$0.52 (18.31%) to $3.36 on volume of 1.8 million shares; and
- SAI Global Limited (SAI), +$0.38 (17.51%) to $2.55 on volume of 465.7 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Macquarie DDR Trust (MDT), -$0.04 (13.33%) to $0.26 on volume of 9.5 million shares;
- St Barbara Limited (SBM), -$0.04 (12.28%) to $0.25 on volume of 16.2 million shares;
- Bannerman Resources Limited (BMN), -$0.2 (10%) to $1.80 on volume of 648.4 thousand shares;
- CBH Resources Limited (CBH), -$0.02 (10%) to $0.14 on volume of 1.1 million shares; and
- Felix Resources Limited (FLX), -$1.34 (6.93%) to $18.00 on volume of 354.2 thousand shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 5075.4 | 160.1 | 3.26 | 867.2m |
| XFL | ASX 50 | 4927.8 | 180.7 | 3.81 | 302.5m |
| XJO | ASX 200 | 5011.8 | 171.4 | 3.54 | 753.7m |
| XKO | ASX 300 | 5005.5 | 168.4 | 3.48 | 814.1m |
| XMD | ASX Mid-Cap 50 | 4856.1 | 140.6 | 2.98 | 186.6m |
| XSO | ASX Small Ordinaries | 2848.3 | 44.8 | 1.6 | 325.1m |
| XTL | ASX 20 | 2832.4 | 104 | 3.81 | 136.6m |
| XTO | ASX 100 | 4063.4 | 144.7 | 3.69 | 489.1m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 19 | 87 | 157 | 304 | 121 | 618 |
| Declines | 1 | 12 | 37 | 125 | 56 | 451 |
| Advancing Volume | 135.2m | 438.1m | 641.4m | 713.2m | 240.7m | 874.4 million |
| Declining Volume | 1.4m | 43.5m | 94.4m | 127.6m | 66.2m | 222.6 million |
GICS Industry Indices
Among the 11 industry indices, it was green across the board, as every sector managed to keep its head above water.
The best performing index was Property Trusts (XPJ), which added 63.4 points (5.04%) to 1320.7 points. The 21 stocks which make up the index traded a total of 155.71 million units; 17 index components rose, with rising volume amounting to 133.18 million shares, while the 2 decliners had volume traded totalling 16.28 million units. The major percentage gainers within the index were
- Stockland (SGP), +$0.37 (8.11%) to $4.93 on volume of 11 million shares;
- GPT Group (GPT), +$0.13 (8.01%) to $1.69 on volume of 21.4 million shares;
- ING Office Fund (IOF), +$0.09 (7.69%) to $1.26 on volume of 5.2 million shares;
- Dexus Property Group (DXS), +$0.10 (7.48%) to $1.37 on volume of 14.1 million shares; and
- Mirvac Group (MGR), +$0.15 (6.52%) to $2.45 on volume of 6.2 million shares.
Second in the index leadership stakes was Industrials (XNJ), which gained 222.6 points (5.04%) to 4635.9 points. The 31 stocks which make up the index traded a total of 84.21 million units; 29 index components rose, with rising volume amounting to 83.49 million shares, while the 2 decliners had volume traded totalling 0.72 million units. The major percentage gainers within the index were
- Macquarie Infrastructure Group (MIG), +$0.28 (13.08%) to $2.42 on volume of 19.4 million shares;
- Asciano Group (AIO), +$0.28 (8.48%) to $3.58 on volume of 5.7 million shares;
- Transurban Group (TCL), +$0.33 (7.1%) to $4.98 on volume of 4.2 million shares;
- CSR Limited (CSR), +$0.14 (6.94%) to $2.08 on volume of 5.6 million shares; and
- Leighton Holdings Limited (LEI), +$2.94 (6.82%) to $46.05 on volume of 477.7 thousand shares.
The bronze medal for today goes to Consumer Staples (XSJ), which climbed 278.2 points (4.07%) to 7106.3 points. The 11 stocks which make up the index traded a total of 26.55 million units; 10 index components rose, with rising volume amounting to 24.23 million shares, while sole declining stock traded 2.32 million units. The major percentage gainers within the index were
- Wesfarmers Limited (WES), +$1.37 (4.28%) to $33.40 on volume of 2.3 million shares;
- Woolworths Limited (WOW), +$1.00 (3.96%) to $26.24 on volume of 4.2 million shares;
- Coca-Cola Amatil Limited (CCL), +$0.27 (3.71%) to $7.54 on volume of 1.9 million shares;
- Foster's Group Limited (FGL), +$0.17 (3.66%) to $4.82 on volume of 5.7 million shares; and
- Metcash Limited (MTS), +$0.12 (3.04%) to $4.07 on volume of 1.6 million shares.
As mentioned above, there were no declining sectors today.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XPJ | Property Trusts | 1320.7 | 63.4 | 5.04 | 156m |
| XNJ | Industrials | 4635.9 | 222.6 | 5.04 | 84m |
| XSJ | Consumer Staples | 7106.3 | 278.2 | 4.07 | 27m |
| XXJ | Financials ex Property Trusts | 5043.4 | 197 | 4.06 | 82m |
| XMJ | Materials | 13856.4 | 481.8 | 3.6 | 238m |
| XIJ | Information Technology | 510.8 | 16.8 | 3.4 | 1m |
| XDJ | Consumer Discretionary | 1627 | 49.9 | 3.16 | 42m |
| XTJ | Telecommunications | 1494.4 | 35.3 | 2.42 | 44m |
| XUJ | Utilities | 5393.7 | 103.5 | 1.96 | 33m |
| XEJ | Energy | 17264.2 | 193.9 | 1.14 | 37m |
| XHJ | Healthcare | 8530.3 | 8.1 | 0.1 | 8m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| SDL | Sundance Resources Limited | 0.31 | 0.09 | 38.64 | 85.3m |
| TLS | Telstra Corporation Limited. | 4.36 | 0.12 | 2.83 | 37.8m |
| OXR | Oxiana Limited | 2.01 | 0.05 | 2.55 | 30.2m |
| GPT | GPT Group | 1.69 | 0.13 | 8.01 | 21.4m |
| MIG | Macquarie Infrastructure Group | 2.42 | 0.28 | 13.08 | 19.4m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| SDL | Sundance Resources Limited | 0.31 | 0.09 | 38.64 | 85.3m |
| GTP | Great Southern Limited | 0.64 | 0.13 | 24.51 | 2.1m |
| AFG | Allco Finance Group Limited | 0.53 | 0.09 | 20.45 | 11.6m |
| MAFCA | Multiplex Prime Property Fund | 0.33 | 0.06 | 20 | 277.2k |
| KZL | Kagara Zinc Limited | 3.36 | 0.52 | 18.31 | 1.8m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| MDT | Macquarie DDR Trust | 0.26 | -0.04 | -13.33 | 9.5m |
| SBM | St Barbara Limited | 0.25 | -0.04 | -12.28 | 16.2m |
| BMN | Bannerman Resources Limited | 1.80 | -0.20 | -10 | 648.4k |
| CBH | CBH Resources Limited | 0.14 | -0.02 | -10 | 1.1m |
| ESG | Eastern Star Gas Limited | 0.60 | -0.06 | -9.09 | 1.5m |
