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Let's get one thing very clear - I would never, under any circumstances, undertake an activity which had an easily-computed, objectively negative expected value. To do so would be madness.
Now we can argue about the ability to tilt the odds, and so forth - but let's face it, the majority of people who get excited about the Melbourne Cup are people who take an interest in horse racing once a year. They think about horseys in the period between the Cox Plate and the Melbourne Cup.
Then, once The Race That Stops A Nation is run, half the young men go off in search of a pissed secretary (you can pick them out a mile off - they are usually carrying their shoes in their hands, since women's shoes are so stupidly designed and uncomfortable).
So anyway... the crowd at Flemington are not likely to have hit upon a probability-tilting formula for horse-picking.
Anyway... what that means is that I am anti-horse racing.
I am also slightly peeved that a small open economy can be brought to a halt by a silly race between animals who are dumber than dogs. (I love horses with an absolute passion, but they are only slightly smarter than sheep).
But there you have it. We can't always get what we want - but at least we can satisfy ourselves with the ease with which the market provides solutions to most things. The market is a terrific thing - whether you want a roast beef sandwich or a contract killing, the remarkable system of mutually beneficial exchange will see to it that you get the highest quality outcome at the lowest possible cost.
Major Market Indices
The broad market - the All Ordinaries (XAO) - declined gently, dropping 3.2 points (0.08%), finishing at 4169.8 points. The index hit an intraday high of 4180.2 at 3:24 pm, while the low for the day was 4095.1 - set at 12:08 pm Sydney time. AS you can see from the graphic below, the reaction to the RBA rate decision (and the press conference held by Wayne Swan and his ridiculous toupee) was muted... a sort of existential 'feh'.
Total volume traded on the ASX was an utterly feeble 892.3m units, 29.4% below its 10-day average of 1.26bn shares - as befits a day on which there was a much-hyped horse race to divert the attention of the mug punters that populate the 'investment' market in Straya. I have never met any demographic more wedded to the 'gee-gees' than the stockbrokerage crowd.
The ASX's daily listing of all stocks included 1029 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 438 issues rose, with volume in rising issues totalling 373.7m units; there were 349 declining stocks, which traded aggregate declining volume of 377.7m shares.
Of the 493 All Ordinaries components, 204 rose while 192 fell. Volume was tilted in favour of the losers by a margin of 1.1:1, with 269.74m shares traded in gainers while 300.71m 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) - fell mildly, losing 6.4 points (0.15%), closing out the session at 4215.1 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 4169.80 | -3.20 (0.1%) |
| ASX 20 | 2568.30 | -4.40 (0.2%) |
| ASX 50 | 4269.00 | -4.20 (0.1%) |
| ASX 100 | 3471.90 | -4.70 (0.1%) |
| ASX 200 | 4215.10 | -6.40 (0.2%) |
| ASX 300 | 4192.70 | -5.80 (0.1%) |
| ASX Mid-Cap 50 | 3746.90 | -16.20 (0.4%) |
| ASX Small Ordinaries | 1957.80 | -3.30 (0.2%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - slid modestly, falling 4.4 points (0.17%), closing out the session at 2568.3 points.
The 21 stocks which make up the index traded a total of 86.99m units; 11 index components rose, with rising volume amounting to 42.38m shares, while the 9 decliners had volume traded totalling 42.78m units. The major percentage gainers within the index were
- Suncorp-Metway. (SUN), +$0.40 (4.45%) to $9.38 on volume of 1.9 million shares;
- Westpac Banking Corporation (WBC), +$0.83 (3.87%) to $22.30 on volume of 8.3 million shares;
- Woodside Petroleum (WPL), +$1.56 (3.68%) to $43.97 on volume of 1.4 million shares;
- Macquarie Group (MQG), +$0.95 (2.87%) to $34.00 on volume of 1.3 million shares; and
- St George Bank (SGB), +$0.83 (2.85%) to $29.93 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:
- Wesfarmers (WES), -$1.04 (4.27%) to $23.31 on volume of 2.5 million shares;
- RIO Tinto (RIO), -$2.29 (2.79%) to $79.71 on volume of 1.2 million shares;
- Newcrest Mining (NCM), -$0.59 (2.78%) to $20.65 on volume of 1.3 million shares;
- BHP Billiton (BHP), -$0.78 (2.61%) to $29.12 on volume of 6.8 million shares; and
- Westfield Group (WDC), -$0.39 (2.41%) to $15.78 on volume of 4.5 million shares.
At the other end of the market-cap spectrum lie the denizens of the ASX Small Ordinaries (XSO) - the place where non-mania excess returns lie. The small end of the market slid in line with its large-cap counterpart. The Small Ords dropped very modestly, falling 3.3 points (0.17%), closing out the session at 1957.8 points.
Among the stocks that make up the Small Caps index, 89 index components finished to the upside, and of the rest, 90 closed lower for the session.
The 207 stocks which make up the index traded a total of 196.13m units: volume in the 89 gainers totalling 82.39m shares, with trade totalling 81.11m units in the index's 90 declining components. The major percentage gainers within the index were- Record Realty (RRT), +$0.00 (66.67%) to $0.01 on volume of 1.3 million shares;
- Sundance Resources (SDL), +$0.03 (28.57%) to $0.14 on volume of 19.2 million shares;
- Biota Holdings (BTA), +$0.09 (27.27%) to $0.42 on volume of 513.7 thousand shares;
- Rivercity Motorway Group (RCY), +$0.04 (25.81%) to $0.20 on volume of 940.1 thousand shares; and
- Rubicon America Trust (RAT), +$0.01 (25%) to $0.03 on volume of 471.5 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Lynas Corporation (LYC), -$0.06 (12.22%) to $0.40 on volume of 2.1 million shares;
- Independence Group NL (IGO), -$0.22 (12.08%) to $1.57 on volume of 957.7 thousand shares;
- Moly Mines (MOL), -$0.05 (11.39%) to $0.35 on volume of 1.1 million shares;
- Strike Resources Ltd (SRK), -$0.05 (11.11%) to $0.40 on volume of 186.8 thousand shares; and
- Jabiru Metals (JML), -$0.02 (10.81%) to $0.17 on volume of 2 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 4169.8 | -3.2 | -0.08 | 667.7m |
| XFL | ASX 50 | 4269 | -4.2 | -0.1 | 197m |
| XJO | ASX 200 | 4215.1 | -6.4 | -0.15 | 527m |
| XKO | ASX 300 | 4192.7 | -5.8 | -0.14 | 597.4m |
| XMD | ASX Mid-Cap 50 | 3746.9 | -16.2 | -0.43 | 210.8m |
| XSO | ASX Small Ordinaries | 1957.8 | -3.3 | -0.17 | 189.6m |
| XTL | ASX 20 | 2568.3 | -4.4 | -0.17 | 80.4m |
| XTO | ASX 100 | 3471.9 | -4.7 | -0.14 | 407.8m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 11 | 45 | 81 | 204 | 89 | 438 |
| Declines | 9 | 51 | 106 | 192 | 90 | 349 |
| Advancing Volume | 42.4m | 153.7m | 212.7m | 269.7m | 82.4m | 373.7m |
| Declining Volume | 42.8m | 207.6m | 256.1m | 300.7m | 81.1m | 377.7m |
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 Energy (XEJ), which added 243 points (1.8%) to 13723.6 points. The 19 stocks which make up the index traded a total of 77.99m units; 8 index components rose, with rising volume amounting to 13.84m shares, while the 8 decliners had volume traded totalling 10.42m units. The major percentage gainers within the index were
- Felix Resources (FLX), +$0.97 (7.79%) to $13.42 on volume of 530.1 thousand shares;
- Worleyparsons (WOR), +$1.10 (6.67%) to $17.60 on volume of 1 million shares;
- Australian Worldwide Exploration (AWE), +$0.11 (4.25%) to $2.70 on volume of 3.1 million shares;
- Woodside Petroleum (WPL), +$1.56 (3.68%) to $43.97 on volume of 1.4 million shares; and
- Origin Energy (ORG), +$0.37 (2.31%) to $16.42 on volume of 1.5 million shares.
Second in the index leadership stakes was Healthcare (XHJ), which gained 139.9 points (1.52%) to 9323 points. The 9 stocks which make up the index traded a total of 5.83m units; 4 index components rose, with rising volume amounting to 2.69m shares, while the 3 decliners had volume traded totalling 2.61m units. The major percentage gainers within the index were
- ResMed Inc. (RMD), +$0.15 (2.88%) to $5.35 on volume of 387.2 thousand shares;
- CSL (CSL), +$1.00 (2.67%) to $38.50 on volume of 2 million shares;
- Cochlear (COH), +$0.18 (0.31%) to $59.00 on volume of 112.4 thousand shares; and
- Healthscope (HSP), +$0.01 (0.21%) to $4.71 on volume of 229.2 thousand shares.
The bronze medal for today goes to Financials ex Property Trusts (XXJ), which climbed 69.7 points (1.46%) to 4837 points. The 29 stocks which make up the index traded a total of 57.5m units; 17 index components rose, with rising volume amounting to 41.09m shares, while the 9 decliners had volume traded totalling 8.09m units. The major percentage gainers within the index were
- Sunland Group (SDG), +$0.11 (10.63%) to $1.15 on volume of 781.4 thousand shares;
- FKP Property Group (FKP), +$0.08 (5.91%) to $1.35 on volume of 334.2 thousand shares;
- Henderson Group PLC (HGG), +$0.06 (4.58%) to $1.37 on volume of 1.5 million shares;
- Suncorp-Metway. (SUN), +$0.40 (4.45%) to $9.38 on volume of 1.9 million shares; and
- Westpac Banking Corporation (WBC), +$0.83 (3.87%) to $22.30 on volume of 8.3 million shares.
The worst-performed index for the session was Materials (XMJ), which dipped 200.9 points (2.14%) to 9203.9 points. The 45 stocks which make up the index traded a total of 120.26m units; The 31 decliners had volume traded totalling 77.43m units, and 13 index components rose, with rising volume amounting to 39.27m shares, The major percentage decliners within the index were
- Lynas Corporation (LYC), -$0.06 (12.22%) to $0.40 on volume of 2.1 million shares;
- Independence Group NL (IGO), -$0.22 (12.08%) to $1.57 on volume of 957.7 thousand shares;
- Coeur d'Alene Mines Corporation (CXC), -$0.11 (9.95%) to $0.95 on volume of 431.4 thousand shares;
- Mincor Resources NL (MCR), -$0.06 (6.52%) to $0.86 on volume of 692.2 thousand shares; and
- Sino Gold Mining (SGX), -$0.22 (6.34%) to $3.25 on volume of 481.7 thousand shares.
Just missing out on the wooden spoon was Consumer Staples (XSJ), which slid 138.9 points (1.96%) to 6949.6 points. The 13 stocks which make up the index traded a total of 21.71m units; The 8 decliners had volume traded totalling 17.88m units, and 4 index components rose, with rising volume amounting to 3.72m shares, The major percentage decliners within the index were
- ABB Grain (ABB), -$0.38 (4.52%) to $8.02 on volume of 126.7 thousand shares;
- Wesfarmers (WES), -$1.04 (4.27%) to $23.31 on volume of 2.5 million shares;
- AWB (AWB), -$0.12 (4.03%) to $2.86 on volume of 267.6 thousand shares;
- Goodman Fielder (GFF), -$0.04 (2.4%) to $1.63 on volume of 5 million shares; and
- Timbercorp (TIM), -$0.01 (1.79%) to $0.55 on volume of 381.2 thousand shares.
Third-to-last amongst the sector indices was Telecommunications (XTJ), which slid 23.5 points (1.66%) to 1395.2 points. The 3 stocks which make up the index traded a total of 19.17m units; all three declined...
- Singapore Telecommunications. (SGT), -$0.16 (6.3%) to $2.38 on volume of 3 million shares;
- Telecom Corporation Of New Zealand (TEL), -$0.12 (5.41%) to $2.10 on volume of 1 million shares; and
- Telstra Corporation. (TLS), -$0.05 (1.19%) to $4.15 on volume of 15.1 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XEJ | Energy | 13723.6 | 243 | 1.8 | 78m |
| XHJ | Healthcare | 9323 | 139.9 | 1.52 | 6m |
| XXJ | Financials ex Property Trusts | 4837 | 69.7 | 1.46 | 58m |
| XUJ | Utilities | 4616.1 | 55.7 | 1.22 | 27m |
| XNJ | Industrials | 3779.8 | 22.8 | 0.61 | 64m |
| XIJ | Information Technology | 485 | -3.9 | -0.8 | 1m |
| XPJ | Property Trusts | 1026.3 | -11.5 | -1.11 | 127m |
| XDJ | Consumer Discretionary | 1358.1 | -17.4 | -1.26 | 28m |
| XTJ | Telecommunications | 1395.2 | -23.5 | -1.66 | 19m |
| XSJ | Consumer Staples | 6949.6 | -138.9 | -1.96 | 22m |
| XMJ | Materials | 9203.9 | -200.9 | -2.14 | 120m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| QGC | Queensland Gas Company | 5.75 | 0.00 | 0 | 49.9m |
| AIM | AIM Resources | 0.02 | 0.01 | 50 | 24.2m |
| MGX | Mount Gibson Iron | 0.38 | -0.02 | -5.06 | 24m |
| DXS | Dexus Property Group | 0.74 | -0.03 | -3.92 | 24m |
| SDL | Sundance Resources | 0.14 | 0.03 | 28.57 | 19.2m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| RRT | Record Realty | 0.01 | 0.00 | 66.67 | 1.3m |
| AIM | AIM Resources | 0.02 | 0.01 | 50 | 24.2m |
| MOF | Macquarie Office Trust | 0.38 | 0.11 | 40.74 | 7.7m |
| SDL | Sundance Resources | 0.14 | 0.03 | 28.57 | 19.2m |
| BTA | Biota Holdings | 0.42 | 0.09 | 27.27 | 513.7k |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| ABS | ABC Learning Centres | 0.00 | 0.00 | 38k | |
| MCP | Mcpherson's | 1.03 | -1.20 | -53.81 | 601.7k |
| MAFCA | Multiplex Prime Property Fund | 0.13 | -0.02 | -13.33 | 160k |
| LYC | Lynas Corporation | 0.40 | -0.06 | -12.22 | 2.1m |
| IGO | Independence Group NL | 1.57 | -0.22 | -12.08 | 957.7k |
