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So it looks like Lehman is not going to find a White Knight to take it over, but Merrill Lynch will. It warms my heart to see these bastions of ticket-clipping having to call in their markers and wander the global financial landscape pimping themselves - because it reinforces the free market credo in which I believe so fervently. That credo says that eventually the price of a service will be equated with its cost of production. The cost of production of ticket-clipping is zero - which is the genuine value of stocks in the ticket-clipping industry. All additional nonzero value is artificial, and stems from the fact that the industry is massively unionised.
Oh, they don't call it a union, but it's as much a 'no ticket no start' workplace as the Rialto site back when the BLF ruled the construction landscape in Melbourne and construction firms spent massive amounts on 'black plastic' (that was usually the line item that got chivvied up when a bribe was necessary... building sites use a lot of black plastic anyway, and it is impossible to keep tabs on how much is used).
As I was saying - the supposed 'free marketeers' of the exchanges and banking industries don't refer to themselves as union workplaces, but they are closed shops. No ticket, no start. They might pretend it's a form of quality control but given the propensity of the incumbents to generate financial chaos the 'quality control' mantra is clearly bollocks.It's the old story: if a bunch of diploma-ed, coiffed and suited wankers decide to restrict entry into their sector with a view to raising wages, it's all for the good of the client, and the union is called an Institute, an Association, a Society or a Chamber. Think Law Institute, the Australian medical Association, the Australian Society of CPAs, and the Chamber of Commerce - or as I refer to them, the Lawyers' Union, the Doctors' Union, the Accountants' Union and the Shopkeeps' Union.
But if a set of other wankers in blue overalls and workboots decide to restrict entry into their sector with a view to raising wages, it's the thin edge of the Red Menace.
You can't be against unionised labour without being against unionised capital - unless you're a hypocrite. And when one set of unionised capital - the merchant wankers and their ticket-clipping hangers-on - demand that taxpayers pay the bill for their idiotic profligacy, you just know that the whole shebang is a setup.
So if we have to say Bye-bye to Lehman, and if Merrill and AIG shareholders do their balls as their stake is diluted, and if Alitalia's shareholders reap the just rewards of investment in a capital-destroying industry, then I say GOOD. Let bad investments go to Money Heaven where they belong. To do otherwise, corrupts.
As an aside, I note with pride that there is no "Economists' Union". There is no restraint of trade, and anybody can call themselves an Economist: no requirement to hold an economics degree nor to do stupid fake 'Continuing Profession Development' breakfasts, no penalty for declaring oneself an economist without a license, and so on. And yet wages for decent economists are at least as high as wages for decent doctors. And the absence of 'professional accreditation' for economists is not due to a failure of economics to recognise the wage-augmenting powers of unionisation, nor is it because economics is anti-union: economics is not anti-anything, since its job is to explain how a given policy affects resource allocation. To call economics "anti-union" is like calling a scalpel "anti-cancer". At bottom, I think that economics as a profession has - if only implicitly - recognised that once you unionise, you introduce a layer of professional bullshit-artists and middle managers that suck away at the discipline. Again - think of the skeevy pricks who embody the Law Institute or the ABA.
Major Market Indices
The broad market - the All Ordinaries (XAO) - dipped reasonably hard, registering a loss of 82.1 points (1.66%), finishing at 4875 points. The index hit an intraday high of 4957.5 at 10:02 am, while the low for the day was 4832.8 - set at 1:55 pm Sydney time.
Total volume traded on the ASX was 1.1bn units, 9% below its 10-day average. The ASX's daily listing of all stocks included 1338 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 271 issues rose, with volume in rising issues totalling 276.8m units; decliners numbered 794 counters, and between them they traded aggregate declining volume of 734.6m shares.
Of the 491 All Ordinaries components, 101 rose while 322 fell. Volume was tilted in favour of the losers by a margin of 2.7:1, with 218.72m shares traded in gainers while 590.12m 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 86.1 points (1.76%), closing out the session at 4817.7 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 4875.00 | -82.10 (1.7%) |
| ASX 20 | 2729.60 | -51.70 (1.9%) |
| ASX 50 | 4712.70 | -87.70 (1.8%) |
| ASX 100 | 3910.90 | -68.40 (1.7%) |
| ASX 200 | 4817.70 | -86.10 (1.8%) |
| ASX 300 | 4810.10 | -85.60 (1.7%) |
| ASX Mid-Cap 50 | 4862.10 | -51.70 (1.1%) |
| ASX Small Ordinaries | 2698.00 | -55.70 (2.0%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - registered a loss of 51.7 points (1.86%), closing out the session at 2729.6 points.
The 20 stocks which make up the index traded a total of 152.65m units; 4 index components rose, with rising volume amounting to 26.67m shares, while the 16 decliners had volume traded totalling 125.98m units.
The only percentage gainers within the index were
- Woolworths (WOW), +$0.15 (0.54%) to $28.13 on volume of 2.1 million shares;
- Foster's Group (FGL), +$0.03 (0.52%) to $5.78 on volume of 9.3 million shares;
- Rio Tinto (RIO), +$0.18 (0.17%) to $106.43 on volume of 1.6 million shares; and
- BHP Billiton (BHP), +$0.05 (0.14%) to $36.05 on volume of 13.7 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), -$4.55 (10.34%) to $39.46 on volume of 7.4 million shares;
- AMP (AMP), -$0.6 (8.08%) to $6.83 on volume of 10.4 million shares;
- Suncorp-Metway (SUN), -$0.68 (6.68%) to $9.50 on volume of 9.3 million shares;
- Stockland (SGP), -$0.28 (5.12%) to $5.19 on volume of 4.4 million shares; and
- QBE Insurance Group (QBE), -$1.2 (4.96%) to $23.00 on volume of 3.6 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 fell quite a bit harder than its large-cap counterpart. The Small Ords was taken to the woodshed somewhat, sliding 55.7 points (2.02%), closing out the session at 2698 points.
Among the stocks that make up the Small Caps index, 50 index components finished to the upside, and of the rest, 129 closed lower for the session.
The 194 stocks which make up the index traded a total of 267.47m units: volume in the 50 gainers totalling 49.21m shares, with trade totalling 211.19m units in the index's 129 declining components. The major percentage gainers within the index were- Sino Gold Mining (SGX), +$0.42 (14.09%) to $3.40 on volume of 1.5 million shares;
- St Barbara (SBM), +$0.02 (9.09%) to $0.24 on volume of 9.7 million shares;
- Panoramic Resources (PAN), +$0.15 (9.09%) to $1.80 on volume of 2.6 million shares;
- Mirabela Nickel (MBN), +$0.33 (7.86%) to $4.53 on volume of 411 thousand shares; and
- Australian Pharmaceutical Industries (API), +$0.05 (6.8%) to $0.79 on volume of 397.6 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Centro Properties Group (CNP), -$0.03 (31.43%) to $0.07 on volume of 25.9 million shares;
- Centro Retail (CER), -$0.05 (31.03%) to $0.10 on volume of 29.2 million shares;
- Babcock & Brown Power (BBP), -$0.02 (20%) to $0.10 on volume of 9.5 million shares;
- Murchison Metals Ltd (MMX), -$0.28 (14.36%) to $1.67 on volume of 2.4 million shares; and
- Allco Finance Group (AFG), -$0.03 (14.29%) to $0.18 on volume of 2.5 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 4875 | -82.1 | -1.66 | 829.2m |
| XFL | ASX 50 | 4712.7 | -87.7 | -1.83 | 349.4m |
| XJO | ASX 200 | 4817.7 | -86.1 | -1.76 | 714.2m |
| XKO | ASX 300 | 4810.1 | -85.6 | -1.75 | 779m |
| XMD | ASX Mid-Cap 50 | 4862.1 | -51.7 | -1.05 | 162.1m |
| XSO | ASX Small Ordinaries | 2698 | -55.7 | -2.02 | 267.5m |
| XTL | ASX 20 | 2729.6 | -51.7 | -1.86 | 152.7m |
| XTO | ASX 100 | 3910.9 | -68.4 | -1.72 | 511.5m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 4 | 19 | 42 | 101 | 50 | 271 |
| Declines | 16 | 80 | 151 | 322 | 129 | 794 |
| Advancing Volume | 26.7m | 158m | 199.6m | 218.7m | 49.2m | 276.8m |
| Declining Volume | 126m | 349.9m | 506.2m | 590.1m | 211.2m | 734.6m |
GICS Industry Indices
Among the 11 industry indices, today's market action was dominated by sectoral declines - only one sector managed a gain for the day.
The best performing index was Materials (XMJ), which added 63.1 points (0.52%) to 12161.9 points. The 42 stocks which make up the index traded a total of 218.05m units; 23 index components rose, with rising volume amounting to 165.23m shares, while the 17 decliners had volume traded totalling 50.27m units. The major percentage gainers within the index were
- Sino Gold Mining (SGX), +$0.42 (14.09%) to $3.40 on volume of 1.5 million shares;
- Lihir Gold (LGL), +$0.24 (12.95%) to $2.05 on volume of 26.1 million shares;
- Panoramic Resources (PAN), +$0.15 (9.09%) to $1.80 on volume of 2.6 million shares;
- St Barbara (SBM), +$0.02 (9.09%) to $0.24 on volume of 9.7 million shares; and
- Newcrest Mining (NCM), +$1.60 (8.21%) to $21.10 on volume of 5.1 million shares.
The worst-performed index for the session was Financials ex Property Trusts (XXJ), which dipped 177.8 points (3.56%) to 4816.1 points. The 30 stocks which make up the index traded a total of 108.17m units; The 28 decliners had volume traded totalling 107.68m units, and volume in the lone rising index component was 0.48m shares, The major percentage decliners within the index were
- Babcock & Brown (BNB), -$0.32 (16.84%) to $1.58 on volume of 5.6 million shares;
- Allco Finance Group (AFG), -$0.03 (14.29%) to $0.18 on volume of 2.5 million shares;
- Macquarie Group (MQG), -$4.55 (10.34%) to $39.46 on volume of 7.4 million shares;
- AMP (AMP), -$0.6 (8.08%) to $6.83 on volume of 10.4 million shares; and
- Challenger Financial Services Group (CGF), -$0.2 (7.49%) to $2.47 on volume of 2.5 million shares.
Just missing out on the wooden spoon was Property Trusts (XPJ), which slid 50.4 points (3.42%) to 1422.3 points. The 21 stocks which make up the index traded a total of 138.44m units; The 20 decliners had volume traded totalling 136.52m units, and volume in the lone rising index component was 1.92m shares, The major percentage decliners within the index were
- Centro Properties Group (CNP), -$0.03 (31.43%) to $0.07 on volume of 25.9 million shares;
- Centro Retail (CER), -$0.05 (31.03%) to $0.10 on volume of 29.2 million shares;
- Macquarie DDR Trust (MDT), -$0.06 (14.29%) to $0.33 on volume of 2.5 million shares;
- Mirvac Group (MGR), -$0.25 (8.68%) to $2.63 on volume of 3.9 million shares; and
- Babcock&Brown Japan Property Trust (BJT), -$0.07 (8.59%) to $0.75 on volume of 1.1 million shares.
Third-to-last amongst the sector indices was Utilities (XUJ), which slid 152.2 points (3.02%) to 4880.6 points. The 10 stocks which make up the index traded a total of 34.42m units; The 9 decliners had volume traded totalling 34.12m units, and volume in the lone rising index component was 0m shares, The major percentage decliners within the index were
- Babcock & Brown Power (BBP), -$0.02 (20%) to $0.10 on volume of 9.5 million shares;
- Babcock & Brown Infrastructure Group (BBI), -$0.08 (18.99%) to $0.32 on volume of 12.9 million shares;
- Babcock & Brown Wind Partners Group (BBW), -$0.1 (9.48%) to $0.96 on volume of 6.6 million shares;
- Envestra (ENV), -$0.03 (3.45%) to $0.70 on volume of 682.4 thousand shares; and
- Duet Group (DUE), -$0.06 (2%) to $2.94 on volume of 560.3 thousand shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XMJ | Materials | 12161.9 | 63.1 | 0.52 | 218m |
| XSJ | Consumer Staples | 7287.5 | -50.6 | -0.69 | 25m |
| XTJ | Telecommunications | 1445.2 | -13.5 | -0.93 | 33m |
| XEJ | Energy | 16787.2 | -177.4 | -1.05 | 40m |
| XHJ | Healthcare | 9431.8 | -156 | -1.63 | 7m |
| XIJ | Information Technology | 512.8 | -11.1 | -2.12 | 2m |
| XDJ | Consumer Discretionary | 1700.7 | -38.9 | -2.24 | 35m |
| XNJ | Industrials | 4714.2 | -133.3 | -2.75 | 76m |
| XUJ | Utilities | 4880.6 | -152.2 | -3.02 | 34m |
| XPJ | Property Trusts | 1422.3 | -50.4 | -3.42 | 138m |
| XXJ | Financials ex Property Trusts | 4816.1 | -177.8 | -3.56 | 108m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| OZL | OZ Minerals Limited | 1.45 | 0.10 | 7.04 | 74.6m |
| CER | Centro Retail | 0.10 | -0.05 | -31.03 | 29.2m |
| LGL | Lihir Gold Limited | 2.05 | 0.24 | 12.95 | 26.1m |
| CNP | Centro Properties Group | 0.07 | -0.03 | -31.43 | 25.9m |
| TLS | Telstra Corporation Limited. | 4.25 | -0.03 | -0.7 | 25.8m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TOE | Toro Energy Limited | 0.27 | 0.06 | 25.58 | 7.3m |
| SGX | Sino Gold Mining Limited | 3.40 | 0.42 | 14.09 | 1.5m |
| AIM | Aim Resources Limited | 0.03 | 0.00 | 13.04 | 1m |
| LGL | Lihir Gold Limited | 2.05 | 0.24 | 12.95 | 26.1m |
| KMN | Kings Minerals NL | 0.19 | 0.02 | 11.76 | 70k |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CNP | Centro Properties Group | 0.07 | -0.03 | -31.43 | 25.9m |
| CER | Centro Retail | 0.10 | -0.05 | -31.03 | 29.2m |
| CEG | CEC Group Limited | 0.11 | -0.04 | -24.14 | 303.6k |
| BBP | Babcock & Brown Power | 0.10 | -0.02 | -20 | 9.5m |
| BBI | Babcock & Brown Infrastructure Group | 0.32 | -0.08 | -18.99 | 12.9m |
