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So Dirty Dave Kirk quit as boss of Fairfax... the Oxford graduate Rhodes scholar and former All Black skipper (who led the team to the first World Cup), was chucked into the sin bin for the crime of not having been a Rant reader.
Y'see, if he had been a Rant reader, he would have seen this economic downturn coming, and he would have been less aggressive with the 'acquisition' strategy that FXJ pursued in recent years (and of course the debt that accumulated along with the acquisitions). He ought to have put FXJ up for sale, and used the proceeds to short News Corp. har har.
{Note - I only wrote "Dirty Dave" up there because in the CoPS paradigm, everyone called David is automatically granted the moniker "Dirty Dave".}
I shouldn't make light of the situation - Kirk is a clever and urbane man who does not deserve to be mocked (I don't think I mocked, really).
Anyway - that was the big news today - which was less interesting than yesterday's news that Babcock & Brown are going to get bailed out by the banks they owe money to. Madness - investors in BNB can kiss goodbye any hope of a dividend for the foreseeable future: considering that recent events show that the company probably has a negative NAV, I wouldn't be looking for stellar price appreciation either.
If I was a shareholder in one of the banks, I would be kicking up merry hell between now and the next AGM, and also at the AGM. It's a travesty.
Overall, the level of chicanery in the Strayan market is not nearly as bad as in France or the US - at least in the major stocks. Both France and the US have a clique of insiders at major houses who use inside information with impunity, knowing that their cronyships with politicians will ensure that they never get prosecuted. When the corruption becomes so flagrant that large amounts of money disappear, all fingers are pre-programmed to point to a 'rogue trader' - Jerome Kerveil in France, Nick Leeson in the UK (although he was living in Hongkers), and that bloke from NAB.
All were used to cover up massive, systemic cockups that go all the way to Board level.
The US takes the same approach when the powers behind the scenes decide to knock off a President: every president that has been assassinated (or nearly so), has been done in by a 'lone nut' who was subsequently caught and who usually died before their story was fully told.Don't get me wrong - I am all for the assassination of as many politicians as possible. 100% is a lofty target, but I would love to see it achieved and I think it ought to be a part of any freedom loving person's goals for the millennium. What I find objectionable is when the political class 'off' each other during their internecine power struggles, and then blame it on some poor schlub.
So... what else is on my mind at the moment... nothing, it seems. I would like somehow to be able to change the highlighting on the in-line spell checker so that it's more than a stupid little red line, but that can be tomorrow's quest.
Major Market Indices
The broad market - the All Ordinaries (XAO) - dipped reasonably hard, registering a loss of 40.9 points (1.18%), finishing at 3427.2 points. The index hit an intraday high of 3489.8 at 2:32 pm, while the low for the day was 3427.2 - set at 4:15 pm Sydney time after the closing match-out.
For the week, the All Ords lost 6.7% - so did the ASX200.
Total volume traded on the ASX was 1.14bn units, 7.1% below its 10-day average of 1.23bn shares.The ASX's daily listing of all stocks included 1040 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 302 issues rose, with volume in rising issues totalling 309.8m units; there were 504 declining stocks, which traded aggregate declining volume of 592.3m shares.
Of the 488 All Ordinaries components, 141 rose while 246 fell. Volume was tilted in favour of the losers by a margin of 2:1, with 243.47m shares traded in gainers while 493.97m shares traded in the day's losers.
The Index that forms the cash basis for the SPI Futures - the S&P/ASX 200 (XJO) - registered a loss of 42.5 points (1.2%), closing out the session at 3489.9 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 3427.20 | -40.90 (1.2%) |
| ASX 20 | 2111.50 | -24.70 (1.2%) |
| ASX 50 | 3541.90 | -44.20 (1.2%) |
| ASX 100 | 2883.70 | -35.00 (1.2%) |
| ASX 200 | 3489.90 | -42.50 (1.2%) |
| ASX 300 | 3470.50 | -42.20 (1.2%) |
| ASX Mid-Cap 50 | 3130.00 | -29.20 (0.9%) |
| ASX Small Ordinaries | 1555.40 | -19.00 (1.2%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - registered a loss of 24.7 points (1.16%), closing out the session at 2111.5 points. For the week, the ASX20 was off 7.05%.
Among the 20 big guns, 8 index components finished to the upside, and 13 lost ground. The stocks which make up the index traded a total of 131.83m units; 8 index components rose, with rising volume amounting to 55.06m shares, while the 13 decliners had volume traded totalling 76.77m units. The major percentage gainers within the index were
- Macquarie Group (MQG), +$1.78 (6.29%) to $30.08 on volume of 1.3 million shares;
- Stockland (SGP), +$0.09 (2.34%) to $3.94 on volume of 5.5 million shares;
- Brambles (BXB), +$0.15 (2.07%) to $7.40 on volume of 6.9 million shares;
- National Australia Bank (NAB), +$0.35 (1.8%) to $19.81 on volume of 7.6 million shares; and
- Newcrest Mining (NCM), +$0.43 (1.74%) to $25.08 on volume of 2 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- BHP Billiton (BHP), -$1.35 (4.91%) to $26.15 on volume of 24.4 million shares;
- Suncorp-Metway. (SUN), -$0.28 (3.44%) to $7.87 on volume of 3.6 million shares;
- Origin Energy (ORG), -$0.5 (3.08%) to $15.73 on volume of 2.9 million shares;
- Commonwealth Bank Of Australia (CBA), -$0.7 (2.22%) to $30.90 on volume of 3.5 million shares; and
- Woodside Petroleum (WPL), -$0.65 (2.09%) to $30.46 on volume of 1.7 million shares.
The ASX Small Ordinaries (XSO) The small end of the market slid in line with its large-cap counterpart. The Small Ords registered a loss of 19 points (1.21%), closing out the session at 1555.4 points. For the week, the loss amounted to 7% exactly.
Among the stocks that make up the Small Caps index, 58 index components finished to the upside, and of the rest, 118 closed lower for the session.
The 208 stocks which make up the index traded a total of 259.5m units: volume in the 58 gainers totalling 73.92m shares, with trade totalling 156.68m units in the index's 118 declining components. The major percentage gainers within the index were- Felix Resources (FLX), +$1.99 (36.58%) to $7.43 on volume of 2.9 million shares;
- Mineral Resources (MIN), +$0.37 (22.32%) to $2.00 on volume of 96.2 thousand shares;
- HFA Holdings (HFA), +$0.01 (11.11%) to $0.11 on volume of 3.7 million shares;
- Admiralty Resources NL (ADY), +$0.00 (10%) to $0.01 on volume of 6.4 million shares; and
- Centennial Coal Company (CEY), +$0.22 (9.48%) to $2.54 on volume of 2.5 million shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Albidon (ALB), -$0.03 (30.21%) to $0.07 on volume of 6.7 million shares;
- Rubicon America Trust (RAT), -$0 (21.43%) to $0.01 on volume of 801 thousand shares;
- Centro Retail (CER), -$0.01 (16.87%) to $0.07 on volume of 5.8 million shares;
- Rubicon Japan Trust (RJT), -$0 (16.67%) to $0.01 on volume of 608 thousand shares; and
- Record Realty (RRT), -$0 (14.29%) to $0.01 on volume of 388.5 thousand shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 3427.2 | -40.9 | -1.18 | 798.5m |
| XFL | ASX 50 | 3541.9 | -44.2 | -1.23 | 273.8m |
| XJO | ASX 200 | 3489.9 | -42.5 | -1.2 | 701.3m |
| XKO | ASX 300 | 3470.5 | -42.2 | -1.2 | 768m |
| XMD | ASX Mid-Cap 50 | 3130 | -29.2 | -0.92 | 247m |
| XSO | ASX Small Ordinaries | 1555.4 | -19 | -1.21 | 247.3m |
| XTL | ASX 20 | 2111.5 | -24.7 | -1.16 | 126.3m |
| XTO | ASX 100 | 2883.7 | -35 | -1.2 | 520.7m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 8 | 35 | 69 | 141 | 58 | 302 |
| Declines | 13 | 56 | 117 | 246 | 118 | 504 |
| Advancing Volume | 55.1m | 171.1m | 218.2m | 243.5m | 73.9m | 309.8m |
| Declining Volume | 76.8m | 329.9m | 441.2m | 494m | 156.7m | 592.3m |
GICS Industry Indices
Among the 11 industry indices, 4 registered an advance for the session, the remaining 7 lost ground.
The best performing index was Telecommunications (XTJ), which added 7.6 points (0.55%) to 1380.3 points. This index only contains 3 stocks; they traded a total of 21.42m units today. 2 index components rose, with rising volume amounting to 19.46m shares, while the sole declining stock traded 1.97m units. The percentage gainers within the index were
- Telstra Corporation. (TLS), +$0.03 (0.73%) to $4.12 on volume of 17.3 million shares; and
- Singapore Telecommunications. (SGT), +$0.01 (0.38%) to $2.63 on volume of 2.1 million shares.
Second in the index leadership stakes was Information Technology (XIJ), which gained 1.7 points (0.45%) to 382.7 points. This index only contains 2 stocks; they traded a total of 2.45m units today. The lone rising index component had volume amounting to 2.12m shares, while the sole declining stock traded 0.33m units. The gainer:
- Computershare (CPU), +$0.06 (0.88%) to $6.85 on volume of 2.1 million shares.
The bronze medal for today goes to Property Trusts (XPJ), which climbed 1.7 points (0.19%) to 908.3 points. The 21 stocks which make up the index traded a total of 140.91m units; 6 index components rose, with rising volume amounting to 42.93m shares, while the 12 decliners had volume traded totalling 90.87m units. The major percentage gainers within the index were
- Valad Property Group (VPG), +$0.00 (4.35%) to $0.05 on volume of 3.5 million shares;
- GPT Group (GPT), +$0.03 (3.75%) to $0.83 on volume of 12.4 million shares;
- Tishman Speyer Office Fund (TSO), +$0.01 (2.7%) to $0.19 on volume of 9.2 million shares;
- Stockland (SGP), +$0.09 (2.34%) to $3.94 on volume of 5.5 million shares; and
- Goodman Group (GMG), +$0.02 (1.8%) to $0.85 on volume of 7.5 million shares.
The worst-performed index for the session was Energy (XEJ), which dipped 383.4 points (3.36%) to 11024.9 points. The 19 stocks which make up the index traded a total of 43.96m units; The 11 decliners had volume traded totalling 32.65m units, and 6 index components rose, with rising volume amounting to 8.88m shares, The major percentage decliners within the index were
- Australian Worldwide Exploration (AWE), -$0.27 (11.02%) to $2.18 on volume of 3.7 million shares;
- Santos (STO), -$1.2 (8.99%) to $12.15 on volume of 4.4 million shares;
- Aquila Resources (AQA), -$0.31 (8.83%) to $3.20 on volume of 293.5 thousand shares;
- OIL Search (OSH), -$0.23 (5.44%) to $4.00 on volume of 5.5 million shares; and
- Arrow Energy (AOE), -$0.1 (5.05%) to $1.88 on volume of 3.1 million shares.
Just missing out on the wooden spoon was Materials (XMJ), which slid 243.2 points (3.15%) to 7483.6 points. The 45 stocks which make up the index traded a total of 149.76m units; The 24 decliners had volume traded totalling 108.09m units, and 17 index components rose, with rising volume amounting to 37.13m shares, The major percentage decliners within the index were
- Alumina (AWC), -$0.11 (9.73%) to $1.02 on volume of 9.7 million shares;
- Fortescue Metals Group Ltd (FMG), -$0.23 (9.35%) to $2.23 on volume of 9.4 million shares;
- Equinox Minerals (EQN), -$0.14 (9.33%) to $1.36 on volume of 2.5 million shares;
- Paperlinx (PPX), -$0.1 (9.22%) to $0.94 on volume of 2 million shares; and
- Platinum Australia (PLA), -$0.03 (6.38%) to $0.44 on volume of 2.1 million shares.
Third-to-last amongst the sector indices was Utilities (XUJ), which slid 133.6 points (3.14%) to 4125.5 points. The 11 stocks which make up the index traded a total of 48.47m units; The 9 decliners had volume traded totalling 46.87m units, and volume in the lone rising index component was 0.19m shares, The major percentage decliners within the index were
- Babcock & Brown Infrastructure Group (BBI), -$0.02 (16.33%) to $0.08 on volume of 25 million shares;
- Babcock & Brown Power (BBP), -$0.01 (13.51%) to $0.06 on volume of 4.3 million shares;
- Duet Group (DUE), -$0.17 (8.99%) to $1.72 on volume of 3.7 million shares;
- Envestra (ENV), -$0.04 (7.45%) to $0.44 on volume of 641.3 thousand shares; and
- Sp Ausnet (SPN), -$0.06 (5.42%) to $0.96 on volume of 3.3 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XTJ | Telecommunications | 1380.3 | 7.6 | 0.55 | 21m |
| XIJ | Information Technology | 382.7 | 1.7 | 0.45 | 2m |
| XPJ | Property Trusts | 908.3 | 1.7 | 0.19 | 141m |
| XXJ | Financials ex Property Trusts | 3859.3 | 0.5 | 0.01 | 101m |
| XDJ | Consumer Discretionary | 1104.6 | -6.3 | -0.57 | 52m |
| XHJ | Healthcare | 8004.1 | -88.3 | -1.09 | 12m |
| XNJ | Industrials | 2974.7 | -36.5 | -1.21 | 103m |
| XSJ | Consumer Staples | 5981.7 | -79.1 | -1.31 | 33m |
| XUJ | Utilities | 4125.5 | -133.6 | -3.14 | 48m |
| XMJ | Materials | 7483.6 | -243.2 | -3.15 | 150m |
| XEJ | Energy | 11024.9 | -383.4 | -3.36 | 44m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| DXS | Dexus Property Group | 0.83 | -0.02 | -2.37 | 39.1m |
| BNB | Babcock & Brown | 0.26 | -0.14 | -34.62 | 28.6m |
| BBI | Babcock & Brown Infrastructure Group | 0.08 | -0.02 | -16.33 | 25m |
| BHP | BHP Billiton | 26.15 | -1.35 | -4.91 | 24.4m |
| FXJ | Fairfax Media | 1.47 | -0.03 | -1.68 | 17.9m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CPR | Clive Peeters | 0.08 | 0.02 | 40 | 683.7k |
| FLX | Felix Resources | 7.43 | 1.99 | 36.58 | 2.9m |
| SPH | Sphere Investments | 0.43 | 0.09 | 25 | 345k |
| ALD | Allied Gold | 0.28 | 0.06 | 25 | 378.1k |
| MIN | Mineral Resources | 2.00 | 0.37 | 22.32 | 96.2k |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| BNB | Babcock & Brown | 0.26 | -0.14 | -34.62 | 28.6m |
| ALB | Albidon | 0.07 | -0.03 | -30.21 | 6.7m |
| PBD | Port Bouvard | 0.23 | -0.08 | -25 | 160k |
| RAT | Rubicon America Trust | 0.01 | 0.00 | -21.43 | 801k |
| EBB | Everest Babcock & Brown | 0.04 | -0.01 | -20 | 307.5k |
