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To fully get one's brainbox around the extent to which successive generations of politicians and their enablers have compromised our collective future, one need only look at the state of public education (one of the primary drains on public finance). As with anything that is provided in a monopoly, public education costs far more than it needs to, and the product quality is inferior. That is a natural outcome of monopoly, and monopoly doesn't exist without government except in extremely rare instances where the minimum efficient scale is a single firm.
But but but, you cry (please... don't cry)... Education services can be provided by private schools.
Sure they can. But the price they can charge is raised in direct consequence of government education policy - as an alternative market for consumers of education, private schools cost structures (and therefore the price of their output) is affected by the very existence of a government system. And here's a hint: it's not downward pressure on prices.
Plus, private schools are nowadays run by bureaucrats who want a little kingdom and a big paycheck: they get government funding, and in exchange the government controls curriculum. Everybody loses.
This is why any reduction in the number of politicians - regardless of the means of that reduction - is always and everywhere a good thing. So the CIA knocked off a few Kennedies? It's among the few good things the organisation has ever done (and no surprise the benefit to society was entirely unintentional). You might think that harsh: that your beloved GT - a fellow committed to suck concepts as Natural Rights - would countenance the involuntary obliteration of an entire species. (Yes, they are a different species. they are like us humans, but with a void where normal people would find a conscience. An identifiable subspecies of mankind - I reckon it's one person in twelve or so - are genuinely evil sociopaths, and are a genuine danger to life on our planet.)
Well, I advocate this for the same reason as I would advocate the removal of lethal bacteria from a food-preparation surface: and bacteria are morally superior to politicians, because bacteria don't intend to do us harm.
But on to the markets...
Major Market Indices
The broad market - the All Ordinaries (XAO) - advanced modestly, rising 10.7 points (0.21%), finishing at 5093 points. The index hit an intraday high of 5111.9 at 10:19 am, while the low for the day was 5048.3 - set just over an hour later at 11:24 am Sydney time. Nothing like getting the entire day's trading range established early - that way traders know where the lines are
Total volume traded on the ASX was 1.03bn units, 4.5% below its 10-day average. The ASX's daily listing of all stocks included 1270 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 499 issues rose, with volume in rising issues totalling 495.2m units; decliners numbered 476 counters, and between them they traded aggregate declining volume of 429m shares.
Of the 494 All Ordinaries components, 221 rose while 188 fell. Volume was tilted in favour of the gainers by a margin of 1.1:1, with 405.3m shares traded in gainers while 358.74m 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) - posted a modest rise of 9.5 points (0.19%), closing out the session at 5017 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 5093.00 | 10.70 (0.2%) |
| ASX 20 | 2836.00 | 8.30 (0.3%) |
| ASX 50 | 4908.70 | 9.90 (0.2%) |
| ASX 100 | 4065.70 | 9.40 (0.2%) |
| ASX 200 | 5017.00 | 9.50 (0.2%) |
| ASX 300 | 5010.80 | 9.70 (0.2%) |
| ASX Mid-Cap 50 | 4995.20 | 20.70 (0.4%) |
| ASX Small Ordinaries | 2863.90 | -4.50 (0.2%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - advanced by just under a third of a percent, adding 8.3 points (0.29%), closing out the session at 2836 points.
The 20 stocks which make up the index traded a total of 133.42m units; 9 index components rose, with rising volume amounting to 76.99m shares, while the 10 decliners had volume traded totalling 52.33m units. The major percentage gainers within the index were
- QBE Insurance Group (QBE), +$1.14 (5.14%) to $23.30 on volume of 4.3 million shares;
- Woodside Petroleum (WPL), +$2.27 (4.02%) to $58.77 on volume of 2.5 million shares;
- Foster's Group (FGL), +$0.16 (2.96%) to $5.57 on volume of 16.3 million shares;
- Brambles (BXB), +$0.20 (2.81%) to $7.33 on volume of 5.5 million shares; and
- Woolworths (WOW), +$0.66 (2.47%) to $27.36 on volume of 2.4 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- Macquarie Group (MQG), -$4 (8.69%) to $42.05 on volume of 7.6 million shares;
- Suncorp-Metway (SUN), -$0.5 (4.05%) to $11.86 on volume of 6.3 million shares;
- AMP (AMP), -$0.11 (1.68%) to $6.43 on volume of 4.3 million shares;
- Commonwealth Bank Of Australia (CBA), -$0.65 (1.53%) to $41.70 on volume of 3 million shares; and
- St George Bank (SGB), -$0.4 (1.35%) to $29.32 on volume of 1.2 million shares.
At the other end of the market-cap spectrum, the ASX Small Ordinaries (XSO) swam in the opposite direction to the big fish today. The tidddlers stayed underwater while the Top20 posted a gain. The Small Ords slid modestly, falling 4.5 points (0.16%), closing out the session at 2863.9 points.
Among the stocks that make up the Small Caps index, 80 index components finished to the upside, and 96 closed lower for the session. Total index volume was 246.61m units: up volume was 123.58m shares, with trade totalling 97.63m units in the index's declining components. The major percentage gainers within the index were
- Sundance Resources (SDL), +$0.04 (17.78%) to $0.27 on volume of 18.7 million shares;
- Hastie Group (HST), +$0.26 (10.7%) to $2.69 on volume of 1.2 million shares;
- Rubicon America Trust (RAT), +$0.01 (8.57%) to $0.08 on volume of 530.3 thousand shares;
- Mirvac Industrial Trust (MIX), +$0.02 (7.55%) to $0.29 on volume of 1.9 million shares; and
- Kingsgate Consolidated (KCN), +$0.24 (5.41%) to $4.68 on volume of 164.5 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Record Realty (RRT), -$0.01 (25%) to $0.03 on volume of 872.9 thousand shares;
- Australian Education Trust (AEU), -$0.12 (19.33%) to $0.48 on volume of 2.2 million shares;
- Great Southern (GTP), -$0.13 (17.12%) to $0.61 on volume of 2.6 million shares;
- Rubicon Europe Trust Group (REU), -$0.01 (10.64%) to $0.04 on volume of 567 thousand shares; and
- Babcock & Brown Power (BBP), -$0.02 (9.3%) to $0.20 on volume of 5.7 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 5093 | 10.7 | 0.21 | 830.3m |
| XFL | ASX 50 | 4908.7 | 9.9 | 0.2 | 289.4m |
| XJO | ASX 200 | 5017 | 9.5 | 0.19 | 671.7m |
| XKO | ASX 300 | 5010.8 | 9.7 | 0.19 | 743.1m |
| XMD | ASX Mid-Cap 50 | 4995.2 | 20.7 | 0.42 | 207.1m |
| XSO | ASX Small Ordinaries | 2863.9 | -4.5 | -0.16 | 246.6m |
| XTL | ASX 20 | 2836 | 8.3 | 0.29 | 133.4m |
| XTO | ASX 100 | 4065.7 | 9.4 | 0.23 | 496.5m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 9 | 54 | 98 | 221 | 80 | 499 |
| Declines | 10 | 40 | 91 | 188 | 96 | 476 |
| Advancing Volume | 77m | 236.3m | 324.4m | 405.3m | 123.6m | 495.2m |
| Declining Volume | 52.3m | 252.9m | 320.5m | 358.7m | 97.6m | 429m |
GICS Industry Indices
Among the 11 industry indices, 7 registered an advance for the session, the remaining 4 lost ground.
The best performing index was Energy (XEJ), which added 360.9 points (2.06%) to 17917.8 points thanks largely to the rebound in Energy prices and Woodside's handy earnings increase. The 17 stocks which make up the index traded a total of 41.33m units; 10 index components rose, with rising volume amounting to 29.16m shares, while the 6 decliners had volume traded totalling 9.83m units. The major percentage gainers within the index were
- Woodside Petroleum (WPL), +$2.27 (4.02%) to $58.77 on volume of 2.5 million shares;
- Beach Petroleum (BPT), +$0.04 (3.6%) to $1.15 on volume of 5.2 million shares;
- Arrow Energy (AOE), +$0.11 (3.47%) to $3.28 on volume of 3.7 million shares;
- Oil Search (OSH), +$0.19 (3.37%) to $5.83 on volume of 4.6 million shares; and
- Santos (STO), +$0.58 (3.08%) to $19.39 on volume of 6 million shares.
Second in the index leadership stakes was Consumer Staples (XSJ), which gained 135.4 points (1.9%) to 7252.9 points. The 11 stocks which make up the index traded a total of 43.73m units; 6 index components rose, with rising volume amounting to 36.28m shares, while the 5 decliners had volume traded totalling 7.45m units. The major percentage gainers within the index were
- Foster's Group (FGL), +$0.16 (2.96%) to $5.57 on volume of 16.3 million shares;
- Woolworths (WOW), +$0.66 (2.47%) to $27.36 on volume of 2.4 million shares;
- Goodman Fielder (GFF), +$0.03 (2.12%) to $1.45 on volume of 10 million shares;
- Wesfarmers (WES), +$0.62 (2%) to $31.62 on volume of 2.8 million shares; and
- Futuris Corporation (FCL), +$0.02 (1.16%) to $1.31 on volume of 3.4 million shares.
The bronze medal for today goes to Information Technology (XIJ), which climbed 9.1 points (1.8%) to 515.9 points. Both index components rose -
- Computershare (CPU), +$0.16 (1.81%) to $9.02 on volume of 1.6 million shares; and
- Iress Market Technology (IRE), +$0.10 (1.61%) to $6.30 on volume of 395.4 thousand shares.
The worst-performed index for the session was Utilities (XUJ), which dipped 60.7 points (1.16%) to 5183.9 points. The 10 stocks which make up the index traded a total of 50.99m units; The 4 decliners had volume traded totalling 39.93m units, and 4 index components rose, with rising volume amounting to 9.57m shares, The major percentage decliners within the index were
- Babcock & Brown Infrastructure Group (BBI), -$0.09 (13.43%) to $0.58 on volume of 29.6 million shares;
- Babcock & Brown Power (BBP), -$0.02 (9.3%) to $0.20 on volume of 5.7 million shares;
- Envestra (ENV), -$0.03 (4.17%) to $0.69 on volume of 640.6 thousand shares; and
- Spark Infrastructure Group (SKI), -$0.01 (0.31%) to $1.63 on volume of 4 million shares.
Just missing out on the wooden spoon was Financials ex Property Trusts (XXJ), which slid 38.9 points (0.8%) to 4831 points. The 30 stocks which make up the index traded a total of 83.12m units; The 18 decliners had volume traded totalling 52.56m units, and 10 index components rose, with rising volume amounting to 27.6m shares, The major percentage decliners within the index were
- Macquarie Group (MQG), -$4 (8.69%) to $42.05 on volume of 7.6 million shares;
- Australian Wealth Mgt (AUW), -$0.14 (8.44%) to $1.47 on volume of 1.2 million shares;
- Allco Finance Group (AFG), -$0.03 (5.95%) to $0.40 on volume of 851.6 thousand shares;
- Suncorp-Metway (SUN), -$0.5 (4.05%) to $11.86 on volume of 6.3 million shares; and
- IOOF Holdings (IFL), -$0.24 (3.96%) to $5.82 on volume of 100.6 thousand shares.
Third-to-last amongst the sector indices was Consumer Discretionary (XDJ), which slid 9.2 points (0.54%) to 1682.4 points. The 25 stocks which make up the index traded a total of 37.68m units; The 12 decliners had volume traded totalling 21.94m units, and 12 index components rose, with rising volume amounting to 11.11m shares, The major percentage decliners within the index were
- Fairfax Media (FXJ), -$0.16 (5.37%) to $2.82 on volume of 7.8 million shares;
- Just Group (JST), -$0.13 (3.71%) to $3.37 on volume of 602.2 thousand shares;
- Macquarie Communications Infrastructure Group (MCG), -$0.09 (2.99%) to $2.92 on volume of 2.2 million shares;
- GUD. Holdings (GUD), -$0.2 (2.85%) to $6.81 on volume of 107.1 thousand shares; and
- Invocare (IVC), -$0.13 (2.32%) to $5.48 on volume of 166.1 thousand shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XEJ | Energy | 17917.8 | 360.9 | 2.06 | 41m |
| XSJ | Consumer Staples | 7252.9 | 135.4 | 1.9 | 44m |
| XIJ | Information Technology | 515.9 | 9.1 | 1.8 | 2m |
| XTJ | Telecommunications | 1472.4 | 13.5 | 0.93 | 37m |
| XPJ | Property Trusts | 1407.4 | 4.4 | 0.31 | 128m |
| XMJ | Materials | 13800.4 | 39.8 | 0.29 | 125m |
| XHJ | Healthcare | 9249.3 | 12.5 | 0.14 | 10m |
| XNJ | Industrials | 4815.2 | -19.9 | -0.41 | 139m |
| XDJ | Consumer Discretionary | 1682.4 | -9.2 | -0.54 | 38m |
| XXJ | Financials ex Property Trusts | 4831 | -38.9 | -0.8 | 83m |
| XUJ | Utilities | 5183.9 | -60.7 | -1.16 | 51m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TLS | Telstra Corporation | 4.30 | 0.05 | 1.18 | 35.1m |
| CEU | Connecteast Group | 0.83 | -0.04 | -4.05 | 32.6m |
| BBI | Babcock & Brown Infrastructure Group | 0.58 | -0.09 | -13.43 | 29.6m |
| VBA | Virgin Blue Holdings | 0.50 | -0.02 | -3.85 | 25.9m |
| ALD | Allied Gold | 0.31 | 0.03 | 8.93 | 24.4m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| RNY | Reckson New York Property Trust | 0.27 | 0.05 | 20.45 | 577.9k |
| SDL | Sundance Resources | 0.27 | 0.04 | 17.78 | 18.7m |
| INP | Innamincka Petroleum | 0.55 | 0.07 | 14.74 | 690.5k |
| CWP | Cedar Woods Properties | 2.50 | 0.30 | 13.64 | 61.6k |
| ARH | Australasian Resources | 1.22 | 0.14 | 13.02 | 44.5k |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| RRT | Record Realty | 0.03 | -0.01 | -25 | 872.9k |
| AEU | Australian Education Trust | 0.48 | -0.12 | -19.33 | 2.2m |
| GTP | Great Southern | 0.61 | -0.13 | -17.12 | 2.6m |
| BBI | Babcock & Brown Infrastructure Group | 0.58 | -0.09 | -13.43 | 29.6m |
| REU | Rubicon Europe Trust Group | 0.04 | -0.01 | -10.64 | 567k |
