Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.
Well now... for once the market seemed to decide not to try to shift between size brackets - recently down days have seen small caps outperform big-caps, then underperform on bounces. Today was the exact opposite as the rotational theme was finally thrown in the bin.
But now it's been replaced by something equally stupid - sector rotation.
Why on earth would Banks and Insurers (Financials ex Propertly Trusts), and Consumer Discretionary, have a terrific day when the broader market is making 52-week lows? Consumers have not begun to retrench non-discretionary spending - so what the hell makes anyone think that the rout in Discretionary is finished?
Now let me say at the outset that I don't give a rat's if there are claims that this or that piece of news drove the thinking today. You just don't get a 3% rise in the biggest financials as a result of a financial report, a statistical release or what some idiot told some gullible journalist.
No, this is simply a search for a port in a storm. Given that cash has outperformed equities for two years, you might think that the short term answer to the port-in-a-storm question would 'capital preservation - possibly even negative duration'. But no - brokers have mortgages to pay, so they never advise clients to move to cash (if they do advise their clients to do so, they tend to get sacked, because their bosses' mortgages are even bigger... isn't that right Timbo!).
Imagine if you will, how bad it would have looked if Financials had been repriced towards fair value. Given the balance sheet distress which is still to come, that would be at least 5-10% below current levels. Banks will have to have dividend yields of 10-15% by the time the real low is in: they have had EPS growth which ha been twice the growth of the nominal economy over the last five years, and a lot of that will be given back in writeoffs, wrrite-downs and other words that include 'write' but mean 'bad for teh accounts'.
And the dullards who led the institutions while they were posting banner profits (which will be written away in years to come) have escaped to retirement with 10-figure golden parachutes.
So mote it be...
Major Market Indices
The broad market - the All Ordinaries (XAO) - dipped reasonably hard, registering a loss of 75.6 points (1.52%), finishing at 4882 points. That's a new 52-week low, and in fact the index hasn't closed lower than that since July 17 2006 (when it closed at 4881).
The intraday high which will go down in everybody's MetaStock files is 4957.6 set at 10:00 am; the high for the index once all its components were trading was actually 4900.7 set at 3:15 p.m.
The low for the day (also a new 52-week low) was 4829.2 - set at 1:15 pm Sydney time.
Total volume traded on the ASX was 1.4bn units, 13.7% below its 10-day average. The ASX's daily listing of all stocks included 1377 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 331 issues rose, with volume in rising issues totalling 447.7m units; decliners numbered 773 counters, and between them they traded aggregate declining volume of 775.2m shares.
Of the 493 All Ordinaries components, 160 rose while 268 fell. Volume was tilted in favour of the losers by a margin of 1.2:1, with 410.37m shares traded in gainers while 510.82m 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) - registered a loss of 67.3 points (1.38%), closing out the session at 4820.4 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 4882.00 | -75.60 (1.5%) |
| ASX 20 | 2718.70 | -29.60 (1.1%) |
| ASX 50 | 4715.70 | -63.50 (1.3%) |
| ASX 100 | 3905.60 | -52.70 (1.3%) |
| ASX 200 | 4820.40 | -67.30 (1.4%) |
| ASX 300 | 4816.00 | -68.90 (1.4%) |
| ASX Mid-Cap 50 | 4796.00 | -65.80 (1.4%) |
| ASX Small Ordinaries | 2766.10 | -59.50 (2.1%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - registered a loss of 29.6 points (1.08%), closing out the session at 2718.7 points.
Among the 20 big guns, 12 index components finished to the upside, and of the rest, 8 closed lower for the session. The 20 stocks which make up the index traded a total of 166.99m units; rising volume totalled 76.49m shares, while decliners had volume traded totalling 90.5m units. The major percentage gainers within the index were
- Brambles Limited (BXB), +$0.36 (4.46%) to $8.43 on volume of 3.5 million shares;
- Commonwealth Bank Of Australia (CBA), +$1.72 (4.33%) to $41.40 on volume of 5.5 million shares;
- AMP Limited (AMP), +$0.24 (3.88%) to $6.42 on volume of 5.6 million shares;
- Westpac Banking Corporation (WBC), +$0.77 (3.66%) to $21.79 on volume of 8.6 million shares; and
- ANZ Banking Group (ANZ), +$0.58 (3.53%) to $17.03 on volume of 12.4 million shares.
On the less salubrious side of the big-cap fence, thebig Resources stocks were the worst-performed within the index:
- BHP Billiton Limited (BHP), -$2.31 (6.02%) to $36.04 on volume of 15.9 million shares;
- Rio Tinto Limited (RIO), -$7.05 (5.97%) to $111.05 on volume of 1.8 million shares;
- Woodside Petroleum Limited (WPL), -$2.76 (5.11%) to $51.24 on volume of 3 million shares;
- Stockland (SGP), -$0.17 (3.72%) to $4.40 on volume of 11 million shares; and
- Wesfarmers Limited (WES), -$1.19 (3.41%) to $33.66 on volume of 2.3 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 had significantly worse day than its large-cap counterpart - are we finally seeing a recognition that sector size rotation is a stupid thing to do under a non-cyclical market decline?
The Small Ords was taken to the woodshed somewhat, sliding 59.5 points (2.11%), closing out the session at 2766.1 points.
The 195 stocks which make up the index traded a total of 275.92m units: volume in the 67 gainers totalling 97.16m shares, with trade totalling 168.39m units in the index's 117 declining components. The major percentage gainers within the index were- Macquarie Media Group (MMG), +$0.19 (5.46%) to $3.67 on volume of 493.9 thousand shares;
- Galileo Japan Trust (GJT), +$0.02 (5.17%) to $0.31 on volume of 244.6 thousand shares;
- Redflex Holdings Limited (RDF), +$0.12 (5.11%) to $2.47 on volume of 44.9 thousand shares;
- Mirvac Industrial Trust (MIX), +$0.01 (5%) to $0.21 on volume of 4.8 million shares; and
- Oakton Limited (OKN), +$0.13 (4.33%) to $3.13 on volume of 81.9 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- St Barbara Limited (SBM), -$0.05 (19.23%) to $0.21 on volume of 15.3 million shares;
- Minara Resources Limited (MRE), -$0.34 (18.99%) to $1.45 on volume of 7.3 million shares;
- Rubicon America Trust (RAT), -$0.02 (15.46%) to $0.08 on volume of 525.2 thousand shares;
- Platinum Australia Limited (PLA), -$0.35 (13.94%) to $2.16 on volume of 1.6 million shares; and
- Atlas Iron Limited (AGO), -$0.33 (13.1%) to $2.19 on volume of 1.7 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 4882 | -75.6 | -1.52 | 951.3m |
| XFL | ASX 50 | 4715.7 | -63.5 | -1.33 | 370.4m |
| XJO | ASX 200 | 4820.4 | -67.3 | -1.38 | 779.1m |
| XKO | ASX 300 | 4816 | -68.9 | -1.41 | 875.7m |
| XMD | ASX Mid-Cap 50 | 4796 | -65.8 | -1.35 | 229.4m |
| XSO | ASX Small Ordinaries | 2766.1 | -59.5 | -2.11 | 275.9m |
| XTL | ASX 20 | 2718.7 | -29.6 | -1.08 | 167m |
| XTO | ASX 100 | 3905.6 | -52.7 | -1.33 | 599.8m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 12 | 51 | 94 | 160 | 67 | 331 |
| Declines | 8 | 47 | 98 | 268 | 117 | 773 |
| Advancing Volume | 76.5m | 269.2m | 326.9m | 410.4m | 97.2m | 447.7m |
| Declining Volume | 90.5m | 314.3m | 426.3m | 510.8m | 168.4m | 775.2m |
GICS Industry Indices
Among the 11 industry indices, it was pretty much even stevens, with a very slight lead to the duds... the 5 that had an "up" day were just shaded by the remaining 6 which didn't.
The best performing index was Financials ex Property Trusts (XXJ), which added 138 points (2.94%) to 4835.1 points. The 30 stocks which make up the index traded a total of 84.86m units; 23 index components rose, with rising volume amounting to 77.7m shares, while the 5 decliners had volume traded totalling 5.29m units. The major percentage gainers within the index were
- AXA Asia Pacific Holdings Limited (AXA), +$0.39 (9.09%) to $4.68 on volume of 4.3 million shares;
- Perpetual Limited (PPT), +$1.99 (4.93%) to $42.34 on volume of 80 thousand shares;
- Commonwealth Bank Of Australia (CBA), +$1.72 (4.33%) to $41.40 on volume of 5.5 million shares;
- Australand Property Group (ALZ), +$0.03 (4.31%) to $0.61 on volume of 4.2 million shares; and
- AMP Limited (AMP), +$0.24 (3.88%) to $6.42 on volume of 5.6 million shares.
Second in the index leadership stakes was Consumer Discretionary (XDJ), which gained 27.1 points (1.74%) to 1580.9 points. The 25 stocks which make up the index traded a total of 54.47m units; 19 index components rose, with rising volume amounting to 45.27m shares, while the 5 decliners had volume traded totalling 8.97m units. The major percentage gainers within the index were
- Macquarie Communications Infrastructure Group (MCG), +$0.28 (9.89%) to $3.11 on volume of 3.1 million shares;
- Macquarie Media Group (MMG), +$0.19 (5.46%) to $3.67 on volume of 493.9 thousand shares;
- Aristocrat Leisure Limited (ALL), +$0.23 (4.64%) to $5.19 on volume of 2.8 million shares;
- ABC Learning Centres Limited (ABS), +$0.03 (4.38%) to $0.72 on volume of 2.7 million shares; and
- APN News & Media Limited (APN), +$0.13 (4.23%) to $3.20 on volume of 725 thousand shares.
The bronze medal for today goes to Industrials (XNJ), which climbed 54.7 points (1.16%) to 4780.8 points. The 32 stocks which make up the index traded a total of 102.42m units; 18 index components rose, with rising volume amounting to 63.36m shares, while the 13 decliners had volume traded totalling 36.74m units. The major percentage gainers within the index were
- Macquarie Airports (MAP), +$0.17 (6.12%) to $2.95 on volume of 18.3 million shares;
- Virgin Blue Holdings Limited (VBA), +$0.04 (4.61%) to $0.80 on volume of 1.3 million shares;
- Brambles Limited (BXB), +$0.36 (4.46%) to $8.43 on volume of 3.5 million shares;
- Asciano Group (AIO), +$0.21 (4.35%) to $5.04 on volume of 5.5 million shares; and
- Transurban Group (TCL), +$0.19 (3.51%) to $5.60 on volume of 7.9 million shares.
The worst-performed index for the session was Materials (XMJ), which dipped 879.8 points (6.51%) to 12644.5 points. The 42 stocks which make up the index traded a total of 215.81m units; The 37 decliners had volume traded totalling 205.59m units, and 5 index components rose, with rising volume amounting to 10.22m shares, The major percentage decliners within the index were
- St Barbara Limited (SBM), -$0.05 (19.23%) to $0.21 on volume of 15.3 million shares;
- Minara Resources Limited (MRE), -$0.34 (18.99%) to $1.45 on volume of 7.3 million shares;
- Platinum Australia Limited (PLA), -$0.35 (13.94%) to $2.16 on volume of 1.6 million shares;
- Atlas Iron Limited (AGO), -$0.33 (13.1%) to $2.19 on volume of 1.7 million shares; and
- Independence Group NL (IGO), -$0.33 (12.18%) to $2.38 on volume of 1.2 million shares.
Just missing out on the wooden spoon was Energy (XEJ), which slid 792.8 points (4.63%) to 16318.1 points. The 17 stocks which make up the index traded a total of 47.33m units; The 17 decliners had volume traded totalling 47.33m units, and volume in the lone rising index component was 0m shares, The major percentage decliners within the index were
- Energy Resources Of Australia Limited (ERA), -$1.92 (9.5%) to $18.30 on volume of 1.1 million shares;
- Arrow Energy Limited (AOE), -$0.31 (9.42%) to $2.98 on volume of 4.1 million shares;
- Paladin Energy Limited (PDN), -$0.43 (8.19%) to $4.82 on volume of 6 million shares;
- Nexus Energy Limited (NXS), -$0.09 (7.14%) to $1.17 on volume of 2.5 million shares; and
- Queensland Gas Company Limited (QGC), -$0.32 (6.93%) to $4.30 on volume of 1.5 million shares.
Third-to-last amongst the sector indices was Telecommunications (XTJ), which slid 31 points (1.97%) to 1538.9 points. The 3 stocks which make up the index traded a total of 58.22m units; The 2 decliners had volume traded totalling 56.51m units, and volume in the lone rising index component was 1.71m shares, The major percentage decliners within the index were
- Telstra Corporation Limited. (TLS), -$0.12 (2.63%) to $4.45 on volume of 53 million shares; and
- Telecom Corporation Of New Zealand Limited (TEL), -$0.03 (1.03%) to $2.89 on volume of 3.5 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XXJ | Financials ex Property Trusts | 4835.1 | 138 | 2.94 | 85m |
| XDJ | Consumer Discretionary | 1580.9 | 27.1 | 1.74 | 54m |
| XNJ | Industrials | 4780.8 | 54.7 | 1.16 | 102m |
| XPJ | Property Trusts | 1342.7 | 14.8 | 1.11 | 152m |
| XUJ | Utilities | 5347.9 | 0.9 | 0.02 | 21m |
| XHJ | Healthcare | 8296.8 | -54.1 | -0.65 | 9m |
| XSJ | Consumer Staples | 7086.5 | -86.5 | -1.21 | 32m |
| XIJ | Information Technology | 493 | -7.2 | -1.44 | 2m |
| XTJ | Telecommunications | 1538.9 | -31 | -1.97 | 58m |
| XEJ | Energy | 16318.1 | -792.8 | -4.63 | 47m |
| XMJ | Materials | 12644.5 | -879.8 | -6.51 | 216m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TLS | Telstra Corporation Limited. | 4.45 | -0.12 | -2.63 | 53m |
| OZL | OZ Minerals Limited | 1.66 | -0.23 | -11.97 | 45.8m |
| LGL | Lihir Gold Limited | 2.43 | -0.27 | -10 | 26.7m |
| CPA | Commonwealth Property Office Fund | 1.42 | 0.07 | 4.81 | 18.6m |
| MAP | Macquarie Airports | 2.95 | 0.17 | 6.12 | 18.3m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TMR | Tamaya Resources Limited | 0.04 | 0.01 | 18.18 | 10.8m |
| RNY | Reckson New York Property Trust | 0.21 | 0.03 | 16.67 | 11m |
| CPB | Campbell Brothers Limited | 31.00 | 3.90 | 14.39 | 192.3k |
| MCG | Macquarie Communications Infrastructure Group | 3.11 | 0.28 | 9.89 | 3.1m |
| AXA | AXA Asia Pacific Holdings Limited | 4.68 | 0.39 | 9.09 | 4.3m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| SBM | St Barbara Limited | 0.21 | -0.05 | -19.23 | 15.3m |
| MRE | Minara Resources Limited | 1.45 | -0.34 | -18.99 | 7.3m |
| ARR | Arasor International Limited | 0.13 | -0.03 | -16.13 | 351.5k |
| RAT | Rubicon America Trust | 0.08 | -0.02 | -15.46 | 525.2k |
| CRE | Crescent Gold Limited | 0.12 | -0.02 | -14.29 | 170.7k |
