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...law is often but the tyrant’s will, and always so when it violates the right of an individual
Thomas Jefferson
Yet again, the opening orgasm - the Nuffie Stampede - resulted in the high print of the session in the first hour. In fact today the high print was just on 15 minutes after the open.
I keep harping on this - that 19 times out of 20 the 'Fade' trade works, regardless of whether it's a falling market or a rising one (obviously a 'fade' of a falling market involves buying the first lurch down, rather than selling the first lurch up).
From the end of the opening spurt to the first oversold (at 11:30) was a move of a little over 60 SPI points (although between the pre-market high in the SPI and the 1:40 .p.m. low, the move was over 120 SPI points). Then, there was actually a little buying divergence on the intraday CCI, but it hardly amounted to anything (as should be expected, the market having moved from deep oversold to deep overbought in three sessions).
Now we get to the meat. Tonight in the US it's a holiday. A load of tasteless, hormone-crammed turkeys will be killed (American turkeys are genetic freaks, and are very much like the American Ideal: big breasts, but absolutely no taste). In fact, American turkeys ar injected (after being killed) with a mixture of salt water and olive oil - otherwise the breast meat taste like cardboard.
I hope that every American who voted chokes on a particularly dry piece of freak turkey. Imagine the improvement - ridding the world of 150 million idiots at once. Anyone who votes, helps perpetuate the rapine and slaughter perpetrated by all politicians: Australians have the excuse that they are forced to vote under threat of violence (I still don't vote though - they can go and get stuffed... har har).
OK - enough about the stupid holiday. Let's talk Telstra for a couple of sentences.
Now since Sol "Manuel from Barthelona" Trujillo got off the boat from whatever barrio they got him from, TLS's share performance has been abysmal, considering the massive free cash flow that it ought to be able to generate. Investors were given a glimpse of the hubris - almost contempt - that Telstra management has for the Australian telecomms market, when Telstra responded to a Request for Proposals for a National Broadband Network... and the thing submitted by Telstra was 13 pages.
Don't get me wrong - I have the same level of contempt for the government as Telstra's management. Difference is: I'm not managing billions of dollars of shareholders' money and relying on government monopoly. Frankly, since TLS's sole capacity to make money stems from government enforcement of oligopoly in telecomms, you would think that Sol "Manuel From Barthelona" would make sure that all the right asses were kissed, all the right politicians were sent the right type of prostitute, and so forth.
Well, not a bit of it, or so it would seem; perhaps Telstra think it just has to turn up and the job is theirs... I dunno.
Two last things... first, we've decided to put up the price of the subscriber site (for new subscribers only, of course) starting December 1st which is next Monday.
The justification is straightforward - we're slightly ahead of plan on subscriber numbers, and we are sourcing funding to do some good stuff (like purchase historical data for the Managed Funds module, which is now finished) so a revenue bump would help us get a more favourable multiple (no secrets, see... )..
The improvements that will be rolled out in December more than justify a hike - the new price will still be $250 less than the old InvestorWeb Diamond membership, so it's still the best-value offer out there. Show me any other crowd priced similarly, whose Model Portfolios show a gain for the year.
Second: I have found out through the grapevine that the Australian government has started paying a private intelligence gatherer to spy on domestic political organisations. So I and a few well-placed friends are going to do the same thing, only in reverse.
We are going to find dirt on politicians, and anyone connected with politicians. We are going to put it on the interwebs, and not in a chummy way (so it won't be friendly like Crikey, for example, which is now too matey with various different vermin nests).
Never again will a hack ABC journalist become head of some ministerially-appointed women's lobby simply by dint of having rooted a married politician.
And now, the numbers...
Major Market Indices
The broad market - the All Ordinaries (XAO) - rose strongly, registering a gain of 48.6 points (1.40%), finishing at 3528.2 points. The index hit an intraday high of 3590.7 at 10:16 am, while the low for the day was 3519.8 - set at 1:26 pm Sydney time. As I write this (at 4:50, Strayan time), SPI futures have continued to weaken, with the last print at 3561 (a further 25 points below the day close).
Total volume traded on the ASX was 1.25bn units, 3.3% below its 10-day average of 1.3bn shares.The ASX's daily listing of all stocks included 1068 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 489 issues rose, with volume in rising issues totalling 748.4m units; there were 337 declining stocks, which traded aggregate declining volume of 355.6m shares.
Of the 489 All Ordinaries components, 242 rose while 153 fell. Volume was tilted in favour of the gainers by a margin of 2:1, with 606.31m shares traded in gainers while 302.89m 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) - managed a solid gain, adding 48 points (1.36%), closing out the session at 3588 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 3528.20 | 48.60 (1.4%) |
| ASX 20 | 2165.40 | 22.30 (1.0%) |
| ASX 50 | 3635.30 | 46.60 (1.3%) |
| ASX 100 | 2961.00 | 39.00 (1.3%) |
| ASX 200 | 3588.00 | 48.00 (1.4%) |
| ASX 300 | 3567.40 | 48.10 (1.4%) |
| ASX Mid-Cap 50 | 3224.70 | 51.40 (1.6%) |
| ASX Small Ordinaries | 1619.70 | 27.70 (1.7%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - performed solidly, in moving up 22.3 points (1.04%), closing out the session at 2165.4 points.
Among the 20 big guns, 14 index components finished to the upside, and of the rest, 6 closed lower for the session. The 21 stocks which make up the index traded a total of 186.46m units; 14 index components rose, with rising volume amounting to 95.2m shares, while the 6 decliners had volume traded totalling 88.21m units. The major percentage gainers within the index were
- Woodside Petroleum (WPL), +$2.10 (6.58%) to $34.00 on volume of 1.8 million shares;
- Brambles (BXB), +$0.38 (5.87%) to $6.85 on volume of 6.1 million shares;
- BHP Billiton (BHP), +$1.55 (5.69%) to $28.80 on volume of 32.7 million shares;
- Stockland (SGP), +$0.20 (5%) to $4.20 on volume of 5.7 million shares; and
- Suncorp-Metway. (SUN), +$0.33 (4.78%) to $7.23 on volume of 2.7 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- Telstra Corporation. (TLS), -$0.16 (3.83%) to $4.02 on volume of 50.8 million shares;
- National Australia Bank (NAB), -$0.57 (2.91%) to $19.00 on volume of 8.5 million shares;
- Wesfarmers (WES), -$0.45 (2.37%) to $18.55 on volume of 2.8 million shares;
- QBE Insurance Group (QBE), -$0.5 (2.17%) to $22.50 on volume of 14.7 million shares; and
- Origin Energy (ORG), -$0.18 (1.14%) to $15.63 on volume of 2.3 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 Ords performed solidly, in moving up 27.7 points (1.74%), closing out the session at 1619.7 points.
The 209 stocks which make up the index traded a total of 323.08m units: volume in the 115 gainers totalling 165.13m shares, with trade totalling 119.69m units in the index's 65 declining components. The major percentage gainers within the index were- Centro Properties Group (CNP), +$0.03 (52.94%) to $0.08 on volume of 14.9 million shares;
- Marion Energy (MAE), +$0.05 (26.32%) to $0.24 on volume of 2.5 million shares;
- Babcock & Brown Power (BBP), +$0.01 (25.81%) to $0.04 on volume of 10.2 million shares;
- Gunns (GNS), +$0.16 (23.48%) to $0.82 on volume of 3.2 million shares; and
- Babcock & Brown Communities Group (BBC), +$0.03 (21.43%) to $0.17 on volume of 3 million shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- HFA Holdings (HFA), -$0.07 (46.67%) to $0.08 on volume of 8.6 million shares;
- Australian Education Trust (AEU), -$0.05 (18.37%) to $0.20 on volume of 315.5 thousand shares;
- Carbon Energy Ltd (CNX), -$0.05 (16.67%) to $0.23 on volume of 5.9 million shares;
- OceanaGold Corporation (OGC), -$0.04 (14.55%) to $0.24 on volume of 279.9 thousand shares; and
- Pacific Brands (PBG), -$0.09 (10.98%) to $0.73 on volume of 2.9 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 3528.2 | 48.6 | 1.4 | 986.6m |
| XFL | ASX 50 | 3635.3 | 46.6 | 1.3 | 375.2m |
| XJO | ASX 200 | 3588 | 48 | 1.36 | 835.1m |
| XKO | ASX 300 | 3567.4 | 48.1 | 1.37 | 938.9m |
| XMD | ASX Mid-Cap 50 | 3224.7 | 51.4 | 1.62 | 255.6m |
| XSO | ASX Small Ordinaries | 1619.7 | 27.7 | 1.74 | 308.1m |
| XTL | ASX 20 | 2165.4 | 22.3 | 1.04 | 180.8m |
| XTO | ASX 100 | 2961 | 39 | 1.33 | 630.8m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 14 | 66 | 130 | 242 | 115 | 489 |
| Declines | 6 | 30 | 62 | 153 | 65 | 337 |
| Advancing Volume | 95.2m | 433m | 550.1m | 606.3m | 165.1m | 748.4m |
| Declining Volume | 88.2m | 170.2m | 260.1m | 302.9m | 119.7m | 355.6m |
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 Materials (XMJ), which added 343 points (4.4%) to 8143.4 points. The 45 stocks which make up the index traded a total of 256.33m units; 34 index components rose, with rising volume amounting to 169.09m shares, while the 10 decliners had volume traded totalling 68.68m units. The major percentage gainers within the index were
- Gunns (GNS), +$0.16 (23.48%) to $0.82 on volume of 3.2 million shares;
- Perilya Limited (PEM), +$0.01 (16.28%) to $0.10 on volume of 2.4 million shares;
- OM Holdings (OMH), +$0.14 (14.14%) to $1.13 on volume of 2.3 million shares;
- Aquarius Platinum (AQP), +$0.34 (11.49%) to $3.30 on volume of 261.7 thousand shares; and
- Straits Resources (SRL), +$0.07 (9.72%) to $0.79 on volume of 3.4 million shares.
Second in the index leadership stakes was Utilities (XUJ), which gained 151.9 points (3.71%) to 4245.2 points. The 11 stocks which make up the index traded a total of 86.73m units; 9 index components rose, with rising volume amounting to 79.44m shares, while sole declining stock traded 4.04m units. The major percentage gainers within the index were
- Babcock & Brown Infrastructure Group (BBI), +$0.01 (30.3%) to $0.04 on volume of 57 million shares;
- Babcock & Brown Power (BBP), +$0.01 (25.81%) to $0.04 on volume of 10.2 million shares;
- Babcock & Brown Wind Partners Group (BBW), +$0.11 (14.29%) to $0.84 on volume of 3.3 million shares;
- APA Group (APA), +$0.15 (6.12%) to $2.60 on volume of 770.4 thousand shares; and
- AGL Energy (AGK), +$0.53 (3.62%) to $15.18 on volume of 1.8 million shares.
The bronze medal for today goes to Energy (XEJ), which climbed 407.9 points (3.55%) to 11907.3 points. The 19 stocks which make up the index traded a total of 49.49m units; 15 index components rose, with rising volume amounting to 43.27m shares, while the 3 decliners had volume traded totalling 5.81m units. The major percentage gainers within the index were
- Paladin Energy (PDN), +$0.33 (17.19%) to $2.25 on volume of 7.4 million shares;
- Riversdale Mining (RIV), +$0.24 (11.76%) to $2.28 on volume of 1.7 million shares;
- ROC Oil Company (ROC), +$0.07 (10%) to $0.72 on volume of 1.1 million shares;
- OIL Search (OSH), +$0.40 (8.93%) to $4.88 on volume of 5.4 million shares; and
- Nexus Energy (NXS), +$0.03 (7.69%) to $0.42 on volume of 2.2 million shares.
The worst-performed index for the session was Telecommunications (XTJ), which dipped 45 points (3.22%) to 1351.6 points. There are only 3 stocks which make up the index, and they traded a total of 59.52m units; The declining stock traded 50.83m units, and 2 index components rose, with rising volume amounting to 8.69m shares, but they wre never going to offset the behemoth...
- Telstra Corporation (TLS), -$0.16 (3.83%) to $4.02 on volume of 50.8 million shares.
Just missing out on the wooden spoon was Information Technology (XIJ), which slid 11.5 points (3.08%) to 361.7 points. The 2 stocks which make up the index traded a total of 3.71m units; the sole declining stock traded 3.48m units...
- Computershare (CPU), -$0.23 (3.47%) to $6.40 on volume of 3.5 million shares.
Third-to-last amongst the sector indices was Consumer Staples (XSJ), which slid 8.1 points (0.13%) to 6063.1 points. The 13 stocks which make up the index traded a total of 23.83m units; The 6 decliners had volume traded totalling 11.57m units, and 7 index components rose, with rising volume amounting to 12.26m shares, The major percentage decliners within the index were
- Timbercorp (TIM), -$0.01 (4.35%) to $0.22 on volume of 1.1 million shares;
- Goodman Fielder (GFF), -$0.05 (3.6%) to $1.34 on volume of 5.2 million shares;
- ABB Grain (ABB), -$0.16 (2.41%) to $6.49 on volume of 545 thousand shares;
- Coca-Cola Amatil (CCL), -$0.21 (2.4%) to $8.54 on volume of 1.2 million shares; and
- Wesfarmers (WES), -$0.45 (2.37%) to $18.55 on volume of 2.8 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XMJ | Materials | 8143.4 | 343 | 4.4 | 256m |
| XUJ | Utilities | 4245.2 | 151.9 | 3.71 | 87m |
| XEJ | Energy | 11907.3 | 407.9 | 3.55 | 49m |
| XNJ | Industrials | 3042 | 91.6 | 3.1 | 112m |
| XDJ | Consumer Discretionary | 1080.7 | 10.7 | 1 | 46m |
| XPJ | Property Trusts | 994.7 | 9.1 | 0.92 | 114m |
| XHJ | Healthcare | 8138.5 | 28.3 | 0.35 | 11m |
| XXJ | Financials ex Property Trusts | 3807.2 | -0.5 | -0.01 | 90m |
| XSJ | Consumer Staples | 6063.1 | -8.1 | -0.13 | 24m |
| XIJ | Information Technology | 361.7 | -11.5 | -3.08 | 4m |
| XTJ | Telecommunications | 1351.6 | -45 | -3.22 | 60m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| BBI | Babcock & Brown Infrastructure Group | 0.04 | 0.01 | 30.3 | 57m |
| TLS | Telstra Corporation. | 4.02 | -0.16 | -3.83 | 50.8m |
| OZL | OZ Minerals | 0.55 | 0.03 | 4.76 | 40.4m |
| PNA | PanAust Ltd | 0.15 | -0.02 | -9.38 | 39.2m |
| BHP | BHP Billiton | 28.80 | 1.55 | 5.69 | 32.7m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CNP | Centro Properties Group | 0.08 | 0.03 | 52.94 | 14.9m |
| VRLPA | Village Roadshow (PA) | 0.83 | 0.20 | 31.75 | 320.2k |
| BBI | Babcock & Brown Infrastructure Group | 0.04 | 0.01 | 30.3 | 57m |
| NFE | Northern Iron | 0.65 | 0.14 | 27.45 | 113.4k |
| MAE | Marion Energy | 0.24 | 0.05 | 26.32 | 2.5m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| HFA | HFA Holdings | 0.08 | -0.07 | -46.67 | 8.6m |
| ARR | Arasor International | 0.01 | 0.00 | -21.43 | 353.8k |
| MAFCA | Multiplex Prime Property Fund | 0.06 | -0.02 | -21.43 | 465.8k |
| TBG | Tutt Bryant Group | 0.65 | -0.15 | -18.75 | 6.2k |
| AEU | Australian Education Trust | 0.20 | -0.05 | -18.37 | 315.5k |
