Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.
The problem we face at the moment is that if everybody is trying to be a contrarian, then in fact nobody is. An American might think this is a paradox, but that is because their national education system is so hollowed out that they have nobody who can teach English properly.
I am not singling out America specifically here - all governments have deliberately dumbed down their livetock - both by subsidising the reproduction of the stupidest, and then by indoctrinating children at taxpayer expense. While it's a global phenomenon, the fact is that the US is the sole developed nation that requires its children to recite a pledge of allegiance to a piece of cloth. That is pretty telling evidence of national brainwashing... and a washed brain is an empty brain. (And don't get me started on the Marine Creed - 'This is my rifle... ' - it is just teh gay).
Humans as a species are a bit like America as a country: we fancy ourselves as pretty darn special. Call it Human Exceptionalism. But frankly - again, like America - we do not live up to our own hype. We engage in periods of mass stupidity with the same alacrity as any wildebeest during their mass migration (so much for our bigger brain and the 'humans-only' power of reason and foresight).
So anyhow... I am getting annoyed that everybody keeps expecting energy and precious metals markets to bounce. While that is the prevailing orthodoxy, it ain't gonna happen; this annoys me because I want to profit from the bounce, which will not happen until the last nuffie bull throws in his chips in despair. We contrarians need to be the voice in the wilderness, Isaiah-like.
There I go getting all Biblical again. As with my fascination with Hitler (the one thing that I share with the neocons) I find it interesting that a book which founds a Chosen people in incest, and specifically advocates genocide in aid of territorial conquest, also has some interesting stories which are worth reading (like the story of Ezekiel - Zeke the Shit-Eater to his friends - in Ezekiel and the Sandwich of Poo ... his own poo, too... just look for 'dung' in the linked page). Ezekiel was a spazz.
And it is popular with folks who want an external source of praise and blame. The wildebeest would laugh at us if they knew.
Major Market Indices
The broad market - the All Ordinaries (XAO) - dipped reasonably hard, registering a loss of 92.9 points (1.83%), finishing at 4997.4 points. The index hit an intraday high of 5090.3 at 10:13 am, while the low for the day was 4973.3 - set at 1:04 pm Sydney time.
Total volume traded on the ASX was 1.09bn units, 4.9% below its 10-day average. The ASX's daily listing of all stocks included 1302 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 321 issues rose, with volume in rising issues totalling 229m units; decliners numbered 687 counters, and between them they traded aggregate declining volume of 750.3m shares.
Of the 493 All Ordinaries components, 120 rose while 301 fell. Volume was tilted in favour of the losers by a margin of 4:1, with 152.27m shares traded in gainers while 608.31m 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 99.5 points (1.97%), closing out the session at 4954.1 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 4997.40 | -92.90 (1.8%) |
| ASX 20 | 2826.30 | -60.60 (2.1%) |
| ASX 50 | 4882.10 | -95.60 (1.9%) |
| ASX 100 | 4023.40 | -79.20 (1.9%) |
| ASX 200 | 4954.10 | -99.50 (2.0%) |
| ASX 300 | 4946.00 | -98.90 (2.0%) |
| ASX Mid-Cap 50 | 4791.00 | -97.30 (2.0%) |
| ASX Small Ordinaries | 2761.80 | -62.90 (2.2%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - was taken to the woodshed somewhat, sliding 60.6 points (2.1%), closing out the session at 2826.3 points. For the first time in quite a while, there was no evidence whatsoever of index rotation.
Among the 20 big guns, 2 index components finished to the upside, and of the rest, 17 closed lower for the session. The 20 stocks which make up the index traded a total of 201.68m units; 2 index components rose, with rising volume amounting to 9.85m shares, while the 17 decliners had volume traded totalling 189.26m units. The percentage gainers within the index were
- Foster's Group Limited (FGL), +$0.01 (0.19%) to $5.30 on volume of 8.6 million shares; and
- Woodside Petroleum Limited (WPL), +$0.06 (0.12%) to $52.00 on volume of 1.3 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- Stockland (SGP), -$0.47 (8.55%) to $5.03 on volume of 9.5 million shares;
- Telstra Corporation (TLS), -$0.18 (4%) to $4.32 on volume of 102.7 million shares;
- Wesfarmers (WES), -$1.25 (3.52%) to $34.24 on volume of 1.2 million shares;
- National Australia Bank (NAB), -$0.89 (3.36%) to $25.58 on volume of 5.5 million shares; and
- Westfield Group (WDC), -$0.56 (3.27%) to $16.59 on volume of 7.4 million shares.
The ASX Small Ordinaries (XSO) will always be the happy hunting ground for any stock analyst worth his salt (back in the old IWL days, portfolios we constructed using our analysis absolutely murdered the index - by 55 p-ercentage points in eight months - and with lower volatility).
The small end of the market fell slightly more than its large-cap counterpart, shedding 62.9 points (2.23%), closing out the session at 2761.8 points.
Among the stocks that make up the Small Caps index, 41 index components finished to the upside, and of the rest, 134 closed lower for the session.
The 195 stocks which make up the index traded a total of 189.23m units: volume in the 41 gainers totalling 33.38m shares, with trade totalling 129.46m units in the index's 134 declining components. The major percentage gainers within the index were- Mintails (MLI), +$0.02 (9.37%) to $0.18 on volume of 77.1 thousand shares;
- Nexus Energy (NXS), +$0.08 (6.99%) to $1.23 on volume of 4.5 million shares;
- Redflex Holdings (RDF), +$0.12 (4.62%) to $2.72 on volume of 261.6 thousand shares;
- Cudeco (CDU), +$0.11 (4.23%) to $2.71 on volume of 226.4 thousand shares; and
- Energy Resources Of Australia (ERA), +$0.74 (4.11%) to $18.75 on volume of 450.2 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Bannerman Resources (BMN), -$0.17 (13.69%) to $1.04 on volume of 2.8 million shares;
- Murchison Metals (MMX), -$0.35 (13.21%) to $2.30 on volume of 3 million shares;
- Gloucester Coal (GCL), -$1.17 (11.83%) to $8.72 on volume of 782.9 thousand shares;
- Felix Resources (FLX), -$1.95 (11.37%) to $15.20 on volume of 967.6 thousand shares; and
- Centro Retail (CER), -$0.04 (10.81%) to $0.33 on volume of 2.4 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 4997.4 | -92.9 | -1.83 | 796.1m |
| XFL | ASX 50 | 4882.1 | -95.6 | -1.92 | 362m |
| XJO | ASX 200 | 4954.1 | -99.5 | -1.97 | 708.8m |
| XKO | ASX 300 | 4946 | -98.9 | -1.96 | 763.1m |
| XMD | ASX Mid-Cap 50 | 4791 | -97.3 | -1.99 | 212m |
| XSO | ASX Small Ordinaries | 2761.8 | -62.9 | -2.23 | 189.2m |
| XTL | ASX 20 | 2826.3 | -60.6 | -2.1 | 201.7m |
| XTO | ASX 100 | 4023.4 | -79.2 | -1.93 | 573.9m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 2 | 22 | 40 | 120 | 41 | 321 |
| Declines | 17 | 77 | 151 | 301 | 134 | 687 |
| Advancing Volume | 9.8m | 112.7m | 134.1m | 152.3m | 33.4m | 229m |
| Declining Volume | 189.3m | 457.9m | 555.6m | 608.3m | 129.5m | 750.3m |
GICS Industry Indices
Among the 11 industry indices, 2 registered an advance for the session (and of those, Energy was as near to unchanged as makes no odds). The remaining 9 industry indices lost ground.
The best performing index was Healthcare (XHJ), which added 21.8 points (0.24%) to 9199.3 points. The 8 stocks which make up the index traded a total of 8.23m units; 2 index components rose, with rising volume amounting to 2.4m shares, while the 5 decliners had volume traded totalling 3.26m units. The major percentage gainers within the index were
- Cochlear Limited (COH), +$3.86 (8.19%) to $51.00 on volume of 932.9 thousand shares; and
- ResMed Inc. (RMD), +$0.05 (0.99%) to $5.09 on volume of 1.5 million shares.
Second in the index leadership stakes was Energy (XEJ), which gained 5.7 points (0.04%) to 16132.7 points. The 17 stocks which make up the index traded a total of 49.13m units; 6 index components rose, with rising volume amounting to 23.38m shares, while the 11 decliners had volume traded totalling 25.75m units. The major percentage gainers within the index were
- Nexus Energy Limited (NXS), +$0.08 (6.99%) to $1.23 on volume of 4.5 million shares;
- Paladin Energy Limited (PDN), +$0.31 (6.72%) to $4.92 on volume of 6.2 million shares;
- Santos Limited (STO), +$0.77 (4.75%) to $16.99 on volume of 3.4 million shares;
- Energy Resources Of Australia Limited (ERA), +$0.74 (4.11%) to $18.75 on volume of 450.2 thousand shares; and
- Oil Search Limited (OSH), +$0.08 (1.72%) to $4.74 on volume of 7.6 million shares.
The worst-performed index for the session was Property Trusts (XPJ), which dipped 71.6 points (4.81%) to 1415.6 points. The 21 stocks which make up the index traded a total of 156.09m units; The 21 decliners had volume traded totalling 156.09m units, and volume in the lone rising index component was 0m shares, The major percentage decliners within the index were
- Centro Retail (CER), -$0.04 (10.81%) to $0.33 on volume of 2.4 million shares;
- Macquarie Office Trust (MOF), -$0.11 (10.78%) to $0.91 on volume of 12.5 million shares;
- Stockland (SGP), -$0.47 (8.55%) to $5.03 on volume of 9.5 million shares;
- Mirvac Group (MGR), -$0.25 (8.01%) to $2.87 on volume of 5.1 million shares; and
- Macquarie DDR Trust (MDT), -$0.03 (7.69%) to $0.36 on volume of 1.4 million shares.
Just missing out on the wooden spoon was Information Technology (XIJ). In other words, Computershare had a bad day. The index slid slid 25.4 points (4.53%) to 535 points. CPU traded 2.56m units, and volume in the lone rising index component (IRE) was 0.27m shares.
- Computershare Limited (CPU), -$0.52 (5.21%) to $9.47 on volume of 2.6 million shares.
Third-to-last amongst the sector indices was Telecommunications (XTJ), which slid 50.9 points (3.32%) to 1483.7. As with the Information Technology index, this index is really "one massive stock and some tiddlers" - in this case it's Telstra. Telstra was the only one of the 3 stocks which make up the index that lost ground. OVerall the index components traded a total of 109.56m units; Tesltra traded 102.71m units of that, and the other 2 index components rose, with rising volume amounting to 6.85m shares.
- Telstra Corporation Limited. (TLS), -$0.18 (4%) to $4.32 on volume of 102.7 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XHJ | Healthcare | 9199.3 | 21.8 | 0.24 | 8m |
| XEJ | Energy | 16132.7 | 5.7 | 0.04 | 49m |
| XDJ | Consumer Discretionary | 1644.6 | -19.4 | -1.17 | 37m |
| XNJ | Industrials | 4893.6 | -69.8 | -1.41 | 67m |
| XUJ | Utilities | 5419.5 | -87.4 | -1.59 | 24m |
| XSJ | Consumer Staples | 7358.3 | -118.9 | -1.59 | 25m |
| XMJ | Materials | 12659 | -226.2 | -1.76 | 155m |
| XXJ | Financials ex Property Trusts | 5103.4 | -121.4 | -2.32 | 75m |
| XTJ | Telecommunications | 1483.7 | -50.9 | -3.32 | 110m |
| XIJ | Information Technology | 535 | -25.4 | -4.53 | 3m |
| XPJ | Property Trusts | 1415.6 | -71.6 | -4.81 | 156m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TLS | Telstra Corporation | 4.32 | -0.18 | -4 | 102.7m |
| OZL | OZ Minerals | 1.65 | -0.08 | -4.64 | 26.5m |
| GPT | GPT Group | 1.70 | -0.10 | -5.56 | 25.6m |
| LGL | Lihir Gold | 2.22 | 0.10 | 4.72 | 22.4m |
| GMG | Goodman Group | 2.93 | -0.07 | -2.33 | 15.8m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CNA | Coal & Allied Industries | 116.90 | 11.89 | 11.32 | 0.1k |
| MLI | Mintails | 0.18 | 0.02 | 9.37 | 77.1k |
| COH | Cochlear | 51.00 | 3.86 | 8.19 | 932.9k |
| REH | Reece Australia | 20.95 | 1.45 | 7.44 | 5.1k |
| NXS | Nexus Energy | 1.23 | 0.08 | 6.99 | 4.5m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| AVJ | Avjennings | 0.73 | -0.16 | -17.61 | 15.1k |
| OEX | Oilex | 0.66 | -0.14 | -16.98 | 1.8m |
| BMN | Bannerman Resources | 1.04 | -0.17 | -13.69 | 2.8m |
| TZN | Terramin Australia | 1.86 | -0.29 | -13.49 | 133k |
| MMX | Murchison Metals | 2.30 | -0.35 | -13.21 | 3m |
