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Those who buy stocks based on the company's contracts with government got a super-clear lesson over the last two sessions, as the incoming government of Mongolia decided it didn't like the deal struck between RIO and the outgoing government. Doubtless the right palms were greased at the time the deal was signed, but as of yesterday they were the wrong palms.
That's the way it goes when you get into bed with the parasite-political class - they can change the rules whenever the hell they feel like it, and declare their actions 'legal' by simply generating a new 'law'.
That's why any stock that does a significant portion of its business with government - any government - should be priced using a significantly higher risk premium than those who rely on private-sector clientele. It might seem great to be dealing with a counterparty whose budget constraint depends only on its ability to extort money from its 'citizens', but you have to remember that the political class are the most unprincipled, dishonest vermin to ever infest human settlements. There is only ONE way to the top in politics, and that is by dirty deeds. If you believe otherwise, then you're naive.
Anyhow... I'm certain that I've contracted Swine Flu.
Just kidding - I have a runny nose and I'm feeling a bit tired, is all.
Swine Flu - like SARS and Bird Flu before it - is just another government beat-up to divert the limited attention of the populace (and to divert large amounts of public funds to politically-connectedPharma - Rumsfeld is a big player in Tamiflu).
It's part of the TECK axis of fake evil... Terrorism, Epidemics, ClimateChaos and KiddiePorn.
All of these represent completely government-generated scare campaigns encouraging couch-bound morons to over-estimate a set of absolutely microscopic risks - because it's easier to fleece a scared population if your claimed product is security.
Plus, it helps to take people's minds off the fact that trillions of dollars are being siphoned out of their pockets and transferred to government cronies.
I also noticed that the Strayan government - in a typical Stalinist attempts to control the information flowing to its livestock - will impose fines of $11k on anybody who somuch as links to one of the thousands of sites that the government has placed on its modern version of the Inquisition's Index of Banned Books.
The decision to copy such bastions of freedom and respect for human rights as North Korea and China is salutary: it shows that for parasitic scum like KRudd and his cronies, liberty is a word that is important only insofar as you can use it n a slogan which you then repudiate through your actions.
Well guess what - that only applies to sites hosted in Australia: KRudd is prepared to sound the death knell of Australian webhosts (who are already at amassive cost disadvantage relative to their overseascounterparts).
In Brief: Fuck You, KRudd. We are not children, nor are we livestock.
Major Market Indices
The broad market - the All Ordinaries (XAO) - declined gently, dropping 16.8 points (0.43%), finishing at 3887.4 points.
The index hit an intraday high of 3914.9 at 10:19 am, while the low for the day was 3870.1 - set at 2:49 pm Sydney time. The closing print was 12 points higher than the index level at 3:59p.m. - indicating that somebody manipulated the closing matchout.
Total volume traded on the ASX was 2.27bn units, 6.4% above its 10-day average of 2.13bn shares.The ASX's daily listing of all stocks included 1354 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 453 issues rose, with volume in rising issues totalling 883.4m units; there were 580 declining stocks, which traded aggregate declining volume of 1.06bn shares.
Of the 499 All Ordinaries components, 174 rose while 235 fell. Volume was tilted in favour of the losers by a margin of 1.3:1, with 662.44m shares traded in gainers while 893.02m shares traded in the day's losers.
The Index that forms the cash basis for the SPI Futures - the S&P/ASX 200 (XJO) - fell mildly, losing 19.3 points (0.49%), closing out the session at 3884.8 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 3887.40 | -16.80 (0.4%) |
| ASX 20 | 2352.60 | -9.30 (0.4%) |
| ASX 50 | 3910.50 | -10.50 (0.3%) |
| ASX 100 | 3187.90 | -9.20 (0.3%) |
| ASX 200 | 3884.80 | -19.30 (0.5%) |
| ASX 300 | 3880.20 | -19.50 (0.5%) |
| ASX Mid-Cap 50 | 3496.70 | -15.00 (0.4%) |
| ASX Small Ordinaries | 2068.50 | -12.50 (0.6%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - slid modestly, falling 9.3 points (0.39%), closing out the session at 2352.6 points.
Among the 20 big guns, 10 index components finished to the upside, and 11 lost ground. The stocks which make up the index traded a total of 276.39m units; 10 index components rose, with rising volume amounting to 85.27m shares, while the 11 decliners had volume traded totalling 186.56m units. The major percentage gainers within the index were
- Macquarie Group Ltd (MQG), +$1.02 (2.84%) to $36.97 on volume of 2.1 million shares;
- CSL Ltd (CSL), +$0.83 (2.74%) to $31.13 on volume of 5.8 million shares;
- Foster's Group Ltd (FGL), +$0.10 (1.97%) to $5.17 on volume of 10.6 million shares;
- Wesfarmers Ltd (WES), +$0.40 (1.86%) to $21.87 on volume of 7.3 million shares; and
- Westfield Group (WDC), +$0.20 (1.82%) to $11.21 on volume of 12.2 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- Rio Tinto Ltd (Rights) (RIOR), -$5.44 (18.29%) to $24.30 on volume of 3.4 million shares;
- Rio Tinto Ltd (RIO), -$5.16 (8.95%) to $52.52 on volume of 9.2 million shares;
- BHP Billiton Ltd (BHP), -$0.96 (2.69%) to $34.70 on volume of 26.9 million shares;
- Telstra Corp Ltd (TLS), -$0.04 (1.19%) to $3.32 on volume of 72.2 million shares; and
- Newcrest Mining Ltd (NCM), -$0.36 (1.16%) to $30.72 on volume of 3.2 million shares.
The ASX Small Ordinaries (XSO) The small end of the market had significantly worse day than its large-cap counterpart. The Small Ords slid modestly, falling 12.5 points (0.6%), closing out the session at 2068.5 points.
Among the stocks that make up the Small Caps index, 73 index components finished to the upside, and of the rest, 114 closed lower for the session.
The 214 stocks which make up the index traded a total of 537.58m units: volume in the 73 gainers totalling 164.06m shares, with trade totalling 290.02m units in the index's 114 declining components. The major percentage gainers within the index were- Eastern Star Gas (ESG), +$0.10 (13.29%) to $0.81 on volume of 8.4 million shares;
- Macquarie Leisure Trust (MLE), +$0.16 (12.55%) to $1.44 on volume of 1.8 million shares;
- Minemakers (MAK), +$0.06 (10.53%) to $0.63 on volume of 983.9 thousand shares;
- Wotif.com Holdings (WTF), +$0.42 (10.22%) to $4.53 on volume of 2.6 million shares; and
- Sundance Resources (SDL), +$0.01 (6.25%) to $0.17 on volume of 27.2 million 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), -$0.07 (12.84%) to $0.48 on volume of 17.4 million shares;
- ING Industrial Fund (IIF), -$0.04 (12.07%) to $0.26 on volume of 9.3 million shares;
- Apex Minerals NL (AXM), -$0.02 (10%) to $0.18 on volume of 9.4 million shares;
- Centro Properties Group (CNP), -$0.01 (9.09%) to $0.10 on volume of 3 million shares; and
- Hastie Group (HST), -$0.11 (7.92%) to $1.22 on volume of 4.2 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 3887.4 | -16.8 | -0.43 | 1698.4m |
| XFL | ASX 50 | 3910.5 | -10.5 | -0.27 | 639.8m |
| XJO | ASX 200 | 3884.8 | -19.3 | -0.49 | 1520.6m |
| XKO | ASX 300 | 3880.2 | -19.5 | -0.5 | 1649.8m |
| XMD | ASX Mid-Cap 50 | 3496.7 | -15 | -0.43 | 508m |
| XSO | ASX Small Ordinaries | 2068.5 | -12.5 | -0.6 | 502m |
| XTL | ASX 20 | 2352.6 | -9.3 | -0.39 | 251.1m |
| XTO | ASX 100 | 3187.9 | -9.2 | -0.29 | 1147.8m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 10 | 45 | 85 | 174 | 73 | 453 |
| Declines | 11 | 57 | 108 | 235 | 114 | 580 |
| Advancing Volume | 85.3m | 495.9m | 618.4m | 662.4m | 164.1m | 883.4m |
| Declining Volume | 186.6m | 679.3m | 828m | 893m | 290m | 1.06bn |
GICS Industry Indices
Among the 11 industry indices, the outcome favoured the upside, but only just - the 6 advancing sectors just triumphed the 5 losing sectors.
The best performing index was Healthcare (XHJ), which added 107.1 points (1.37%) to 7934.1 points. The 10 stocks which make up the index traded a total of 23.67m units; 5 index components rose, with rising volume amounting to 13.81m shares, while the 5 decliners had volume traded totalling 9.86m units. The major percentage gainers within the index were
- CSL Ltd (CSL), +$0.83 (2.74%) to $31.13 on volume of 5.8 million shares;
- ResMed Inc (RMD), +$0.11 (2.29%) to $4.92 on volume of 1.3 million shares;
- ISOFT Group Ltd (ISF), +$0.01 (1.49%) to $0.68 on volume of 2.5 million shares;
- Healthscope Ltd (HSP), +$0.06 (1.4%) to $4.34 on volume of 2 million shares; and
- Primary Health Care Ltd (PRY), +$0.01 (0.18%) to $5.46 on volume of 2.2 million shares.
Second in the index leadership stakes was Consumer Staples (XSJ), which gained 47.8 points (0.74%) to 6495 points. The 12 stocks which make up the index traded a total of 55.98m units; 7 index components rose, with rising volume amounting to 37.73m shares, while the 5 decliners had volume traded totalling 18.25m units. The major percentage gainers within the index were
- Foster's Group Ltd (FGL), +$0.10 (1.97%) to $5.17 on volume of 10.6 million shares;
- Wesfarmers Ltd (WES), +$0.40 (1.86%) to $21.87 on volume of 7.3 million shares;
- Coca-Cola Amatil Ltd (CCL), +$0.10 (1.16%) to $8.75 on volume of 3.4 million shares;
- Metcash Ltd (MTS), +$0.03 (0.71%) to $4.27 on volume of 6.2 million shares; and
- Woolworths Ltd (WOW), +$0.12 (0.47%) to $25.62 on volume of 6 million shares.
The bronze medal for today goes to Financials ex Property Trusts (XXJ), which climbed 29.7 points (0.71%) to 4201.8 points. The 25 stocks which make up the index traded a total of 118.63m units; 14 index components rose, with rising volume amounting to 60.41m shares, while the 10 decliners had volume traded totalling 56.87m units. The major percentage gainers within the index were
- Australand Property Group (ALZ), +$0.03 (5.49%) to $0.48 on volume of 4.9 million shares;
- Eircom Holdings (ERC), +$0.05 (4.52%) to $1.16 on volume of 812.5 thousand shares;
- Challenger Fin Ser (CGF), +$0.09 (4.04%) to $2.32 on volume of 2.3 million shares;
- Platinum Asset Management (PTM), +$0.13 (3.17%) to $4.23 on volume of 976.5 thousand shares; and
- Macquarie Group Ltd (MQG), +$1.02 (2.84%) to $36.97 on volume of 2.1 million shares.
The worst-performed index for the session was Materials (XMJ), which dipped 319.1 points (3.07%) to 10085.5 points. The 47 stocks which make up the index traded a total of 343.18m units; The 33 decliners had volume traded totalling 275.64m units, and 12 index components rose, with rising volume amounting to 55.74m shares, The major percentage decliners within the index were
- Rio Tinto Ltd (Rights) (RIOR), -$5.44 (18.29%) to $24.30 on volume of 3.4 million shares;
- Lynas Corporation (LYC), -$0.07 (12.84%) to $0.48 on volume of 17.4 million shares;
- Rio Tinto Ltd (RIO), -$5.16 (8.95%) to $52.52 on volume of 9.2 million shares;
- Mount Gibson Iron (MGX), -$0.06 (6.06%) to $0.93 on volume of 6.7 million shares; and
- Panoramic Resources (PAN), -$0.14 (5.3%) to $2.50 on volume of 3 million shares.
Just missing out on the wooden spoon was Telecommunications (XTJ), which slid 13.7 points (1.19%) to 1142.2 points. The 3 stocks which make up the index traded a total of 85.25m units; The sole declining stock traded 72.25m units, and 2 index components rose, with rising volume amounting to 13m shares. The decliner within the index was
- Telstra Corp Ltd (TLS), -$0.04 (1.19%) to $3.32 on volume of 72.2 million shares.
Third-to-last amongst the sector indices was Information Technology (XIJ), which slid 5.1 points (1.01%) to 499.8 points. The 2 stocks which make up the index traded a total of 3.4m units; The sole declining stock traded 2.67m units, and volume in the lone rising index component was 0.72m shares. The decliner within the index was
- Computershare Ltd (CPU), -$0.11 (1.27%) to $8.54 on volume of 2.7 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XHJ | Healthcare | 7934.1 | 107.1 | 1.37 | 24m |
| XSJ | Consumer Staples | 6495 | 47.8 | 0.74 | 56m |
| XXJ | Financials ex Property Trusts | 4201.8 | 29.7 | 0.71 | 119m |
| XPJ | Property Trusts | 741.8 | 4.6 | 0.62 | 442m |
| XUJ | Utilities | 4058.8 | 9.7 | 0.24 | 57m |
| XDJ | Consumer Discretionary | 1270.1 | 1.7 | 0.13 | 118m |
| XEJ | Energy | 14275.8 | -7.2 | -0.05 | 84m |
| XNJ | Industrials | 2947.1 | -15.9 | -0.54 | 237m |
| XIJ | Information Technology | 499.8 | -5.1 | -1.01 | 3m |
| XTJ | Telecommunications | 1142.2 | -13.7 | -1.19 | 85m |
| XMJ | Materials | 10085.5 | -319.1 | -3.07 | 343m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| GPT | GPT Group | 0.50 | -0.02 | -2.94 | 73m |
| TLS | Telstra Corp Ltd | 3.32 | -0.04 | -1.19 | 72.2m |
| GMG | Goodman Group | 0.40 | 0.02 | 3.95 | 63.6m |
| BLY | Boart Longyear | 0.25 | -0.02 | -5.77 | 59.6m |
| MOF | Macquarie Office Trust | 0.21 | 0.01 | 2.5 | 59.6m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| VIR | Viridis Clean Energy Group | 0.25 | 0.04 | 16.28 | 4.6m |
| ESG | Eastern Star Gas | 0.81 | 0.10 | 13.29 | 8.4m |
| MLE | Macquarie Leisure Trust | 1.44 | 0.16 | 12.55 | 1.8m |
| MAK | Minemakers | 0.63 | 0.06 | 10.53 | 983.9k |
| WTF | Wotif.com Holdings | 4.53 | 0.42 | 10.22 | 2.6m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| RIOR | RIO Tinto Ltd (Rights) | 24.30 | -5.44 | -18.29 | 3.4m |
| LYC | Lynas Corporation | 0.48 | -0.07 | -12.84 | 17.4m |
| IIF | ING Industrial Fund | 0.26 | -0.04 | -12.07 | 9.3m |
| AXM | Apex Minerals NL | 0.18 | -0.02 | -10 | 9.4m |
| CNP | Centro Properties Group | 0.10 | -0.01 | -9.09 | 3m |
