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Well well well... so yesterday's jeremiad (regarding the non-trustworthiness of the engineered short-squeeze which began during the luncheon interval) wasn't far wide of the mark. I never tire of times when a plan comes together.
And today's action was straight from the nuffnuff playbook... US up 100-odd points, nuffnuffs herd in at the Strayan open (the market, not the tennis extravaganza), and from there it's the sound of the bolt gun on the drop floor.
100 points from high to low is nothing to smirk at. For those who ignored the short call from just afore my birfday, a bounce is brewing which ought to enable shorts to reset higher. That call, when it comes, is one that you ignore at your peril... it will be slaughter.
That said, It's not yet time to exit shorts - that will, as usual,. be done on a morning nuffie-splash... as soon as our Swamp-o-meter rises to five.
The Swamp-o-meter is easy to construct - count the number of journalists at Bloomberg, CNBC, the Wall Street Journal and other mainswamp outlets who blather on about continuing market weakness. It's not actually part of their job to convince the masses to get themselves on the wrong side of every trade, but it might as well be.
And this can be extended to other markets. If journalists are banging on about $100 oil every time you turn on the telly... then the right thing to do is to short oil anytime it gets close to $100 (I would not short oil under any circumstances at the moment, as I have said before).
Even thinking about the subprime mess, these hacks only starting writing about it when the overwhelming bulk of the damage was already done in that market segment. Monoline insurers had already lost 75% of their market cap when journalists even discovered what CDO insurance even meant (but I will show today's USRant readers that it was explained to them almost 4 years ago in these very pages).
CBA had a rubbish first half report... but SGB got pummelled much worse. Where's the story about SGB? Answer - nobody has sent a fax to the newsdesks, so the 'finance reporters' have no idea what they are supposed to regurgitate.
Major Market Indices
The broad market - the All Ordinaries (XAO) - gave back almost every point of yesterday's advance, dropping 54.1 points (0.95%), finishing at 5615.3 points. The index hit an intraday high of 5717.2 at 10:17 am, while the low for the day was 5615.3 - set at the close.
Total volume traded on the ASX was 1.43 billion units, 6% below its 10-day average. The ASX's daily listing of all stocks included 1389 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 476 issues rose, with volume in rising issues totalling 483.8 million units. Conversely (or even contrariwise), 638 stocks were dragged to a loss, with aggregate volume traded of 823.9 million shares.
Of the 478 All Ordinaries components, 184 rose while 225 fell. Aggregate volume within the All Ords was evenly split - 387.89 million shares traded in gainers while 393.5 million 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) - registered a loss of 66 points (1.18%), closing out the session at 5542.1 points.
| Name | Close | +/-(%) |
|---|---|---|
| All Ordinaries | 5615.30 | -54.10 (1.0%) |
| ASX 50 | 5357.60 | -88.40 (1.6%) |
| ASX 200 | 5542.10 | -66.00 (1.2%) |
| ASX 300 | 5550.90 | -65.30 (1.2%) |
| ASX Mid-Cap 50 | 5791.70 | 28.80 (0.5%) |
| ASX Small Ordinaries | 3346.80 | -2.40 (0.1%) |
| ASX 20 | 3029.10 | -62.40 (2.0%) |
| ASX 100 | 4477.30 | -58.80 (1.3%) |
The "heavy hitters" of the Australian market - the ASX 20 Leaders (XTL) - were taken to the woodshed somewhat, sliding 62.4 points (2.02%), closing out the session at 3029.1 points. Banks led the carnage.
Among the 20 big guns, 7 index components finished to the upside, and of the rest, 14 closed lower for the session. The 21 stocks which make up the index traded a total of 188.8 million units; 7 index components rose, with rising volume amounting to 99.71 million shares, while the 14 decliners had volume traded totalling 89.09 million units. The major percentage gainers within the index were
- Foster's Group Limited (FGL), +$0.25 (4.54%) to $5.76 on volume of 6.3 million shares;
- Telstra (Installment Receipts) (TLSCA), +$0.07 (2.32%) to $3.09 on volume of 26.4 million shares;
- Woodside Petroleum Limited (WPL), +$0.75 (1.62%) to $47.05 on volume of 2.3 million shares;
- Wesfarmers Limited (WES), +$0.55 (1.48%) to $37.70 on volume of 1.5 million shares; and
- Telstra Corporation Limited. (TLS), +$0.06 (1.31%) to $4.65 on volume of 51.3 million shares.
On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:
- St George Bank Limited (SGB), -$1.95 (7.12%) to $25.45 on volume of 2.6 million shares;
- National Australia Bank Limited (NAB), -$2.08 (6.46%) to $30.12 on volume of 9.8 million shares;
- Commonwealth Bank Of Australia (CBA), -$3.12 (6.32%) to $46.28 on volume of 14.2 million shares;
- Australia And New Zealand Banking Group Limited (ANZ), -$1.57 (6.21%) to $23.73 on volume of 10.1 million shares; and
- AMP Limited (AMP), -$0.44 (5.32%) to $7.83 on volume of 14 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 , while still dropping overall, did significantly better than its large-cap counterpart. The Small Ords slid modestly, falling 2.4 points (0.07%), closing out the session at 3346.8 points.
Among the stocks that make up the Small Caps index, 80 index components finished to the upside, and of the rest, 88 closed lower for the session.
The 192 stocks which make up the index traded a total of 248.32 million units: volume in the 80 gainers totalling 106.05 million shares, with trade totalling 110.31 million units in the index's 88 declining components. The major percentage gainers within the index were- SAI Global Limited (SAI), +$0.32 (13.5%) to $2.69 on volume of 1.3 million shares;
- Bannerman Resources Limited (BMN), +$0.20 (8.4%) to $2.58 on volume of 451 thousand shares;
- Crane Group Limited (CRG), +$1.00 (6.64%) to $16.05 on volume of 458.3 thousand shares;
- Mineral Deposits Limited (MDL), +$0.07 (6.51%) to $1.15 on volume of 275.2 thousand shares; and
- Energy Resources Of Australia Limited (ERA), +$1.28 (6.24%) to $21.78 on volume of 731.1 thousand shares.
In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):
- Credit Corp Group Limited (CCP), -$0.27 (23.28%) to $0.89 on volume of 8.2 million shares;
- Flexigroup Limited (FXL), -$0.25 (17.73%) to $1.16 on volume of 106.6 thousand shares;
- Record Realty (RRT), -$0.07 (11.48%) to $0.54 on volume of 1.5 million shares;
- Rubicon America Trust (RAT), -$0.03 (8.82%) to $0.31 on volume of 1.4 million shares; and
- Macquarie DDR Trust (MDT), -$0.07 (8.75%) to $0.73 on volume of 3 million shares.
Index Changes
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XAO | All Ordinaries | 5615.3 | -54.1 | -0.95 | 821.1m |
| XFL | ASX 50 | 5357.6 | -88.4 | -1.62 | 334.6m |
| XJO | ASX 200 | 5542.1 | -66 | -1.18 | 693.2m |
| XKO | ASX 300 | 5550.9 | -65.3 | -1.16 | 774.2m |
| XMD | ASX Mid-Cap 50 | 5791.7 | 28.8 | 0.5 | 191.3m |
| XSO | ASX Small Ordinaries | 3346.8 | -2.4 | -0.07 | 248.3m |
| XTL | ASX 20 | 3029.1 | -62.4 | -2.02 | 188.8m |
| XTO | ASX 100 | 4477.3 | -58.8 | -1.3 | 525.9m |
Market Breadth
| ASX20 | XTO | XJO | XAO | XSO | Market | |
|---|---|---|---|---|---|---|
| Advances | 7 | 44 | 44 | 183 | 80 | 476 |
| Declines | 14 | 55 | 55 | 225 | 88 | 638 |
| Advancing Volume | 99.7m | 259.2m | 259.2m | 383.9m | 106.1m | 483.8 million |
| Declining Volume | 89.1m | 262.7m | 262.7m | 393.5m | 110.3m | 823.9 million |
GICS Industry Indices
Among the 11 industry indices, 8 registered an advance for the session, the remaining 3 lost ground.
The best performing index was Information Technology (XIJ), which added 37.5 points (8.43%) to 482.6 points. The 2 stocks which make up the index traded a total of 7.53 million units; both rose -
- Computershare Limited (CPU), +$0.68 (8.99%) to $8.24 on volume of 7.2 million shares; and
- Iress Market Technology Limited (IRE), +$0.06 (0.92%) to $6.56 on volume of 286 thousand shares.
Second in the index leadership stakes was Telecommunications (XTJ), which gained 31.3 points (1.93%) to 1650.2 points. The 4 stocks which make up the index traded a total of 83.41 million units; 3 index components rose, with rising volume amounting to 81.03 million shares, while sole declining stock traded 2.38 million units. The major percentage gainers within the index were
- Telstra (Installment Receipts) (TLSCA), +$0.07 (2.32%) to $3.09 on volume of 26.4 million shares;
- Singapore Telecommunications Limited. (SGT), +$0.05 (1.64%) to $3.09 on volume of 3.3 million shares; and
- Telstra Corporation Limited. (TLS), +$0.06 (1.31%) to $4.65 on volume of 51.3 million shares.
The bronze medal for today goes to Utilities (XUJ), which climbed 68.7 points (1.17%) to 5964.1 points. The 11 stocks which make up the index traded a total of 21.17 million units; 7 index components rose, with rising volume amounting to 18.31 million shares, while the 3 decliners had volume traded totalling 2.61 million units. The major percentage gainers within the index were
- Transfield Services Infrastructure Fund (TSI), +$0.08 (5.56%) to $1.52 on volume of 383.6 thousand shares;
- Babcock & Brown Power (BBP), +$0.08 (3.81%) to $2.18 on volume of 2.6 million shares;
- Babcock & Brown Infrastructure Group (BBI), +$0.04 (2.65%) to $1.36 on volume of 8.9 million shares;
- Hastings Diversified Utilities Fund (HDF), +$0.07 (2.62%) to $2.74 on volume of 193.1 thousand shares; and
- AGL Energy Limited (AGK), +$0.28 (2.4%) to $11.93 on volume of 1.4 million shares.
The worst-performed index for the session was ASX200 Financials ex Property Trusts (XXJ), which dipped 278.3 points (4.61%) to 5762.6 points thanks almost entirely to the banks. The 28 stocks which make up the index traded a total of 102.64 million units; The 19 decliners had volume traded totalling 84.32 million units, and 6 index components rose, with rising volume amounting to 13.59 million shares, The major percentage decliners within the index were
- St George Bank Limited (SGB), -$1.95 (7.12%) to $25.45 on volume of 2.6 million shares;
- National Australia Bank Limited (NAB), -$2.08 (6.46%) to $30.12 on volume of 9.8 million shares;
- Commonwealth Bank Of Australia (CBA), -$3.12 (6.32%) to $46.28 on volume of 14.2 million shares;
- Bendigo Bank Limited (BEN), -$0.74 (6.26%) to $11.09 on volume of 1.3 million shares; and
- Australia And New Zealand Banking Group Limited (ANZ), -$1.57 (6.21%) to $23.73 on volume of 10.1 million shares.
Just missing out on the wooden spoon was Healthcare (XHJ), which slid 191.7 points (2.16%) to 8688.5 points. The 9 stocks which make up the index traded a total of 28.09 million units; The 4 decliners had volume traded totalling 5.67 million units, and 5 index components rose, with rising volume amounting to 22.42 million shares, The major percentage decliners within the index were
- CSL Limited (CSL), -$1.1 (3.24%) to $32.90 on volume of 2.5 million shares;
- Sonic Healthcare Limited (SHL), -$0.46 (2.95%) to $15.15 on volume of 1.6 million shares;
- Cochlear Limited (COH), -$1.25 (2.12%) to $57.70 on volume of 1.1 million shares; and
- Healthscope Limited (HSP), -$0.11 (2.04%) to $5.28 on volume of 487.4 thousand shares.
Third-to-last amongst the sector indices was Property Trusts (XPJ), which slid 34.1 points (1.86%) to 1801.5 points. The 20 stocks which make up the index traded a total of 140.71 million units; The 15 decliners had volume traded totalling 104.85 million units, and 5 index components rose, with rising volume amounting to 35.86 million shares, The major percentage decliners within the index were
- Macquarie DDR Trust (MDT), -$0.07 (8.75%) to $0.73 on volume of 3 million shares;
- Apn/Uka European Retail Property Group (AEZ), -$0.04 (5.13%) to $0.74 on volume of 678.2 thousand shares;
- Centro Retail (CER), -$0.02 (4.71%) to $0.41 on volume of 11.1 million shares;
- GPT Group (GPT), -$0.16 (4.16%) to $3.69 on volume of 6.6 million shares; and
- Goodman Group (GMG), -$0.18 (4.04%) to $4.27 on volume of 7.5 million shares.
Sector Indices
| Code | GICS Sector | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| XIJ | Information Technology | 482.6 | 37.5 | 8.43 | 8m |
| XTJ | Telecommunications | 1650.2 | 31.3 | 1.93 | 83m |
| XUJ | Utilities | 5964.1 | 68.7 | 1.17 | 21m |
| XMJ | Materials | 14313.1 | 114.4 | 0.81 | 128m |
| XSJ | Consumer Staples | 7770.6 | 61 | 0.79 | 30m |
| XNJ | Industrials | 5731.6 | 39.6 | 0.7 | 72m |
| XEJ | Energy | 13970 | 26 | 0.19 | 45m |
| XDJ | Consumer Discretionary | 2312.5 | 1.6 | 0.07 | 35m |
| XPJ | Property Trusts | 1801.5 | -34.1 | -1.86 | 141m |
| XHJ | Healthcare | 8688.5 | -191.7 | -2.16 | 28m |
| XXJ | ASX200 Financials ex Property Trusts | 5762.6 | -278.3 | -4.61 | 103m |
All Ordinaries Major Movers
All Ords Volume Leaders
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| TLS | Telstra Corporation Limited. | 4.65 | 0.06 | 1.31 | 51.3m |
| CNP | Centro Properties Group | 0.62 | -0.01 | -0.81 | 31m |
| TLSCA | Telstra (Installment Receipts) | 3.09 | 0.07 | 2.32 | 26.4m |
| SDL | Sundance Resources Limited | 0.25 | -0.01 | -2 | 22.7m |
| MIG | Macquarie Infrastructure Group | 3.23 | 0.15 | 4.87 | 19.6m |
All Ords Percentage Gainers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| NFL | Natural Fuel Limited | 0.12 | 0.02 | 20 | 2m |
| SAI | SAI Global Limited | 2.69 | 0.32 | 13.5 | 1.3m |
| EWC | Energy World Corporation Ltd | 1.03 | 0.09 | 9.57 | 1.8m |
| FZN | Fone Zone Group Limited | 0.58 | 0.05 | 9.43 | 56.4k |
| CPU | Computershare Limited | 8.24 | 0.68 | 8.99 | 7.2m |
All Ords Percentage Losers
| Code | Name | Close | +/- | % | Volume |
|---|---|---|---|---|---|
| CCP | Credit Corp Group Limited | 0.89 | -0.27 | -23.28 | 8.2m |
| FXL | Flexigroup Limited | 1.16 | -0.25 | -17.73 | 106.6k |
| REF | Reverse Corp Limited | 2.51 | -0.49 | -16.33 | 608.7k |
| AXQ | Allco Max Securities And Mortgage Trust | 0.23 | -0.04 | -13.46 | 187.2k |
| RRT | Record Realty | 0.54 | -0.07 | -11.48 | 1.5m |
