Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Australian Stocks Attempted to Break Losing Streak

Stock-Markets / Austrailia Jan 14, 2008 - 08:42 AM GMT

By: Geoffrey_Transom

Stock-Markets We mused on Friday if perhaps the Australian market might be able to break its losing spell this week - and it did its damnedest to do just that today, albeit after a very poor opening.

In the early part of the session, the All Ordinaries was down about 80 points - and then it turned in a ten cent piece and shot back towards the surface, lungs bursting. From a decline of 83 points it actually made it back above the unchanged level less than 90 minutes later. Pretty impressive, but also very worrying; the last thing the Australian economy needs is for its financial markets to have become the plaything for hot money.

Major Market Indices

The broad market - the All Ordinaries ( XAO ) - finished in the red, dropping 13.5 points (0.22%) to close the day at 6040.9 points. The index hit an intraday high of 6072.6 at 12:38 pm, while the low for the day was 5970.8 - set at 10:43 am.

Now read that last paragraph again - in two hours between about half-ten and half-twelve, the Ordinaries rose over a hundred points.

And what was the catalyst? Nothing. Someone decided to have a short squeeze in the SPI, is all.

One ought not complain - after all, this represents the sixth straight session of decline for the Australian market - but there is something seriously wrong when a financial market behaves like the Aust market behaved today. it is a sign that 'investors' really have no idea what they are doing. This is evidenced by the fact that once it got back to (roughly) unchanged, the Australian indices had no idea what to do with themselves. They wandered in a 40-point zigxag for the rest of the session.

Total volume traded on the ASX was a little below average at 1.5 billion units: there's your reason as to why the thing could be pushed as easily as it was during those two hours... someone spotted the soft volume, and took 'er up.

The ASX's daily listing of all stocks included 1447 different 3-letter FPO's which traded (i.e., had non-zero trade volume). Of these, 308 issues rose, with volume in rising issues totalling 435.5 million units. Conversely 881 stocks were dragged to a loss for the session, with aggregate volume traded of 834 million shares.

Of the 478 All Ordinaries components, 130 rose while 298 fell. Volume was tilted in favour of the losers by a margin of 1.3:1, with 295 million shares traded in gainers while 374.24 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 ) - fell mildly, losing 1.6 points (0.03%), closing out the session at 5980 points.

The "heavy hitters" of the Australian market - the ASX 20 Leaders ( XTL ) - actually managed a teensy gain for the day adding 1.8 points (0.05%), closing out the session at 3297 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 134.43 million units; 14 index components rose, with rising volume amounting to 88.36 million shares, while the 6 decliners had volume traded totalling 22.26 million units. The major percentage gainers within the index were

  • Wesfarmers Limited ( WES ), +$1.04 (2.74%) to $39.04 on volume of 1.6 million shares;
  • Brambles Limited ( BXB ), +$0.26 (2.54%) to $10.51 on volume of 10.8 million shares;
  • Foster's Group Limited ( FGL ), +$0.12 (1.91%) to $6.40 on volume of 5.7 million shares;
  • Suncorp-Metway Limited. ( SUN ), +$0.27 (1.76%) to $15.64 on volume of 4.3 million shares; and
  • Macquarie Group Limited ( MQG ), +$1.12 (1.6%) to $71.00 on volume of 2.2 million shares.

On the less salubrious side of the big-cap fence, the following stocks were the worst-performed within the index:

  • Stockland ( SGP ), -$0.14 (1.86%) to $7.38 on volume of 3.7 million shares;
  • Westpac Banking Corporation ( WBC ), -$0.37 (1.42%) to $25.63 on volume of 6.2 million shares;
  • Westfield Group ( WDC ), -$0.21 (1.13%) to $18.34 on volume of 4.1 million shares;
  • St George Bank Limited ( SGB ), -$0.18 (0.59%) to $30.45 on volume of 1.6 million shares; and
  • QBE Insurance Group Limited ( QBE ), -$0.1 (0.32%) to $31.50 on volume of 2 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-fry swam in the opposite direction to the big fish today. The tiddlers stayed underwater while the Top20 posted a gain. The Small Ords slid to a much greater extent than the big caps, falling 15.2 points (0.42%) t0 3611.1 points.

Among the stocks that make up the Small Caps index, 59 index components finished to the upside, and of the rest, 126 closed lower for the session.

The 192 stocks which make up the index traded a total of 286.47 million units: volume in the 59 gainers totalling 87.93 million shares, with trade totalling 151.06 million units in the index's 126 declining components. The major percentage gainers within the index were
  • MFS Limited ( MFS ), +$0.45 (12.68%) to $4.00 on volume of 14.1 million shares;
  • Aditya Birla Minerals limited ( ABY ), +$0.28 (12.67%) to $2.49 on volume of 2.6 million shares;
  • Lynas Corporation Limited ( LYC ), +$0.12 (10.71%) to $1.24 on volume of 1.7 million shares;
  • Austereo Group Limited ( AEO ), +$0.23 (10%) to $2.53 on volume of 75.7 thousand shares; and
  • Murchison Metals Ltd ( MMX ), +$0.23 (8.21%) to $3.03 on volume of 3.6 million shares.

In the red-zone of the little-stock index, the following list represents the biggest downers (in terms of percentage decline):

  • Centennial Coal Company Limited ( CEY ), -$1.99 (40.61%) to $2.91 on volume of 2.3 million shares;
  • Resolute Mining Limited ( RSG ), -$0.2 (9.52%) to $1.90 on volume of 299.2 thousand shares;
  • Sundance Resources Limited ( SDL ), -$0.03 (7.69%) to $0.30 on volume of 45.8 million shares;
  • Gindalbie Metals Ltd ( GBG ), -$0.07 (7.61%) to $0.85 on volume of 3.3 million shares; and
  • Challenger Diversified Property Group ( CDI ), -$0.07 (7.53%) to $0.86 on volume of 612.1 thousand shares.
Index Changes

By Geoffrey Transom

GT is a private trader who lives in Central France. He was Head of Equities Research at Australia's premier independent research house (investorweb), and prior to that worked at an economic modelling think tank for 7 years. During that time he published articles related to the modelling of expectations in financial markets, and began a PhD thesis (not finished) which used a scenario-based sensitivity analysis within a computable general equilibrium model. Prior to the introduction of a new indirect tax in Australia, he advised major companies - 50 of the 100 largest companies in Australia - on the ramifications of tax mix change, and co-authored and presented papers to the Econometric Society and the Commonwealth Treasury on the modelling of financial markets in the Commonwealth Treasury's TRYM macroeconomic model.

GT predicted the CDO crisis way back in 2004 (April 29th to be precise - the relevant segment is re-quoted at /2008/01/cdorant-from-rantvault .html ) and has known that Greenspan was an idiot from about 1998 onwards.

Geoffrey Transom Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in