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Another week draws to a close - during this week the All Ords rose 8.4%. The market is up 14.7% from last Friday's early low. Does that seem sane to you, in a world in which there are still a series of 'next shoes to drop'?
The last time we had one of these short-term meltups was in October... we all know how that turned out. At present, people still have some shred of faith in the ability of governments - that is, collections of people who can't make a living by any means other than parasitic extortion.
Would you expect a giant tapeworm to be able to fix a gastric complaint? I wouldn't - but that's just me.
The meltup late today reflects the sentiment that the US political class will continue to pull it's Sunday Surprises. Every major attempt to manipulate the markets has been announced on a Sunday - starting way back in March with the Fed-induced sale (later overturned by a court) of Bear Stearns to Citigroup.
Bizarre now that you think of it - Citigroup was supposedly in a position to bail out Bear Stearns in March, but by November it (Citigroup) belongs to the US government.
The Citi-Bear Stearns deal was a typical exercise in cronyism - so absolutely corrupt that it made Dick 'dick' Cheney look honest. Bear was told to sell itself to Citi for $2 a share (later this was upped to $10).
Less than a week before Bear was bailed out, Bear's CEO was telling CNBC and others that there were no problems, that Bear had $17 billion in 'excess cash' (how can you ever have excess cash" I wonder?). To the best of my knowledge, he is not in jail for saying that.
Anyway - there have been a raft of these government announcements - as I said a couple of Rants ago, government has been reduced to the same tactics as internet stock touts.
But if you expect a Sunday Surprise, it pays to get out of the way if you're a short-term short - obviously.
Major Market Indices
The broad market - the All Ordinaries (XAO) - surged a whopping 144.5 points (4.10%), finishing at 3672.7 points (in the last half hour of trade, the index rose 40 points). The index high was set at the close, while the low for the day was 3559 at the open.
Total volume traded on the ASX was 1.37bn units, 14.3% above its 10-day average of 1.2bn shares.
The ASX's daily listing of all stocks included 1094 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 530 issues rose, with volume in rising issues totalling 993.4m units; there were 333 declining stocks, which traded aggregate declining volume of 210.7m shares.
Of the 489 All Ordinaries components, 289 rose while 109 fell. Volume was tilted in favour of the gainers by a margin of 6.2:1, with 841.45m shares traded in gainers while 134.96m 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 154.5 points (4.31%), closing out the session at 3742.5 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 3672.70 | 144.50 (4.1%) |
| ASX 20 | 2271.40 | 106.00 (4.9%) |
| ASX 50 | 3801.10 | 165.80 (4.6%) |
| ASX 100 | 3089.60 | 128.60 (4.3%) |
| ASX 200 | 3742.50 | 154.50 (4.3%) |
| ASX 300 | 3719.40 | 152.00 (4.3%) |
| ASX Mid-Cap 50 | 3309.70 | 85.00 (2.6%) |
| ASX Small Ordinaries | 1672.60 | 52.90 (3.3%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - had a bit of a moonshot, stacking on 106 points (4.90%), closing out the session at 2271.4 points.
Among the 20 big guns, 19 index components finished to the upside, and of the rest, 1 closed lower for the session. The stocks which make up the index traded a total of 214.18m units; 19 index components rose, with rising volume amounting to 202.02m shares, while the sole declining stock traded 3.56m units. The major percentage gainers within the index were
- RIO Tinto (RIO), +$3.75 (8.75%) to $46.60 on volume of 7.1 million shares;
- Suncorp-Metway. (SUN), +$0.62 (8.58%) to $7.85 on volume of 2.6 million shares;
- CSL (CSL), +$2.50 (7.76%) to $34.70 on volume of 3.2 million shares;
- BHP Billiton (BHP), +$2.20 (7.64%) to $31.00 on volume of 37.7 million shares; and
- Westpac Banking Corporation (WBC), +$1.14 (6.81%) to $17.89 on volume of 17 million shares.
The index only had one loser - Newcrest Mining (NCM), -$1.11 (4.33%) to $24.55 on volume of 3.6 million shares.
The ASX Small Ordinaries (XSO) significantly underperformed its large-cap counterpart. The Small Ords had a bit of a moonshot, stacking on 52.9 points (3.27%), closing out the session at 1672.6 points.
The 209 stocks which make up the index traded a total of 298.92m units: volume in the 136 gainers totalling 210.09m shares, with trade totalling 61.63m units in the index's 48 declining components.
The major percentage gainers within the index were
- HFA Holdings (HFA), +$0.06 (75%) to $0.14 on volume of 13.8 million shares;
- Babcock & Brown Power (BBP), +$0.03 (64.1%) to $0.06 on volume of 27 million shares;
- Perilya (PEM), +$0.04 (40%) to $0.14 on volume of 1.6 million shares;
- Kagara Zinc (KZL), +$0.10 (29.41%) to $0.44 on volume of 2.2 million shares; and
- Specialty Fashion Group (SFH), +$0.06 (23.08%) to $0.32 on volume of 133.4 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Timbercorp (TIM), -$0.05 (20.45%) to $0.18 on volume of 4.5 million shares;
- Centro Properties Group (CNP), -$0.02 (19.23%) to $0.06 on volume of 8.1 million shares;
- Great Southern (GTP), -$0.04 (15.56%) to $0.19 on volume of 2.4 million shares;
- Deep Yellow (DYL), -$0.01 (8.7%) to $0.11 on volume of 8.1 million shares; and
- SAI Global (SAI), -$0.19 (8.41%) to $2.07 on volume of 105.6 thousand shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 3672.7 | 144.5 | 4.1 | 1061.1m |
| XFL | ASX 50 | 3801.1 | 165.8 | 4.56 | 371.4m |
| XJO | ASX 200 | 3742.5 | 154.5 | 4.31 | 920.6m |
| XKO | ASX 300 | 3719.4 | 152 | 4.26 | 1005.4m |
| XMD | ASX Mid-Cap 50 | 3309.7 | 85 | 2.64 | 351.3m |
| XSO | ASX Small Ordinaries | 1672.6 | 52.9 | 3.27 | 282.7m |
| XTL | ASX 20 | 2271.4 | 106 | 4.9 | 210.1m |
| XTO | ASX 100 | 3089.6 | 128.6 | 4.34 | 722.7m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 19 | 83 | 158 | 289 | 136 | 530 |
| Declines | 1 | 9 | 33 | 109 | 48 | 333 |
| Advancing Volume | 202m | 631.3m | 782.4m | 841.4m | 210.1m | 993.4m |
| Declining Volume | 3.6m | 59.8m | 104.9m | 135m | 61.6m | 210.7m |
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 Healthcare (XHJ), which added 449.8 points (5.53%) to 8588.3 points. The 9 stocks which make up the index traded a total of 12.15m units; 7 index components rose, with rising volume amounting to 9.14m shares, while the 2 decliners had volume traded totalling 3.01m units. The major percentage gainers within the index were
- Primary Health Care (PRY), +$0.31 (7.81%) to $4.28 on volume of 1.9 million shares;
- CSL (CSL), +$2.50 (7.76%) to $34.70 on volume of 3.2 million shares;
- Sonic Healthcare (SHL), +$0.45 (3.48%) to $13.39 on volume of 2.3 million shares;
- Healthscope (HSP), +$0.14 (3.46%) to $4.19 on volume of 196 thousand shares; and
- Cochlear (COH), +$1.25 (2.31%) to $55.28 on volume of 168.7 thousand shares.
Second in the index leadership stakes was Materials (XMJ), which gained 442.7 points (5.44%) to 8586.1 points. The 45 stocks which make up the index traded a total of 189.73m units; 30 index components rose, with rising volume amounting to 129.11m shares, while the 12 decliners had volume traded totalling 50.1m units. The major percentage gainers within the index were
- Perilya Limited (PEM), +$0.04 (40%) to $0.14 on volume of 1.6 million shares;
- Kagara Zinc (KZL), +$0.10 (29.41%) to $0.44 on volume of 2.2 million shares;
- Platinum Australia (PLA), +$0.11 (20%) to $0.63 on volume of 568.1 thousand shares;
- Gunns (GNS), +$0.15 (18.4%) to $0.97 on volume of 2.9 million shares; and
- OM Holdings (OMH), +$0.17 (15.04%) to $1.30 on volume of 2.6 million shares.
The bronze medal for today goes to Financials ex Property Trusts (XXJ), which climbed 190.2 points (5%) to 3997.4 points. The 27 stocks which make up the index traded a total of 114.43m units; 21 index components rose, with rising volume amounting to 101.34m shares, while sole declining stock traded 0.89m units. The major percentage gainers within the index were
- HFA Holdings (HFA), +$0.06 (75%) to $0.14 on volume of 13.8 million shares;
- Sunland Group (SDG), +$0.19 (22.7%) to $1.00 on volume of 580.9 thousand shares;
- Perpetual (PPT), +$4.18 (15.13%) to $31.80 on volume of 46.3 thousand shares;
- Henderson Group PLC (HGG), +$0.16 (13.14%) to $1.34 on volume of 1.3 million shares; and
- Suncorp-Metway. (SUN), +$0.62 (8.58%) to $7.85 on volume of 2.6 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XHJ | Healthcare | 8588.3 | 449.8 | 5.53 | 12m |
| XMJ | Materials | 8586.1 | 442.7 | 5.44 | 190m |
| XXJ | Financials ex Property Trusts | 3997.4 | 190.2 | 5 | 114m |
| XEJ | Energy | 12416.1 | 508.8 | 4.27 | 53m |
| XNJ | Industrials | 3169.7 | 127.7 | 4.2 | 109m |
| XUJ | Utilities | 4395.3 | 150.1 | 3.54 | 222m |
| XPJ | Property Trusts | 1025.4 | 30.7 | 3.09 | 100m |
| XSJ | Consumer Staples | 6239 | 175.9 | 2.9 | 37m |
| XIJ | Information Technology | 372.1 | 10.4 | 2.88 | 3m |
| XDJ | Consumer Discretionary | 1105.9 | 25.2 | 2.33 | 39m |
| XTJ | Telecommunications | 1367.2 | 15.6 | 1.15 | 55m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| BBI | Babcock & Brown Infrastructure Group | 0.08 | 0.03 | 74.42 | 174.6m |
| TLS | Telstra Corporation. | 4.06 | 0.04 | 1 | 45m |
| BHP | BHP Billiton | 31.00 | 2.20 | 7.64 | 37.7m |
| BBP | Babcock & Brown Power | 0.06 | 0.03 | 64.1 | 27m |
| BLY | Boart Longyear | 0.27 | 0.01 | 3.85 | 20.7m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| HFA | HFA Holdings | 0.14 | 0.06 | 75 | 13.8m |
| BBI | Babcock & Brown Infrastructure Group | 0.08 | 0.03 | 74.42 | 174.6m |
| BBP | Babcock & Brown Power | 0.06 | 0.03 | 64.1 | 27m |
| PEM | Perilya | 0.14 | 0.04 | 40 | 1.6m |
| KZL | Kagara Zinc | 0.44 | 0.10 | 29.41 | 2.2m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| NFK | Norfolk Group | 0.21 | -0.06 | -22.64 | 1.1m |
| TIM | Timbercorp | 0.18 | -0.05 | -20.45 | 4.5m |
| EBB | Everest Babcock & Brown | 0.08 | -0.02 | -20 | 42.1k |
| CNP | Centro Properties Group | 0.06 | -0.02 | -19.23 | 8.1m |
| GTP | Great Southern | 0.19 | -0.04 | -15.56 | 2.4m |
