churn, churn, churn

A Look at the Recent Trading History of Nominee Accounts

The following trading statistics cover trading for the months of May, June, July and August. Of course the month of August includes the frenzied trading accompanying the release of the resource upgrade by the company.

My interest in Nominees was piqued by the Zedster in a throw away comment about broker trading Nominee Holdings now disappearing from the Top 30 of the register. Which they basically have, but I hope to revisit that topic later when I get a chance.

The figures below specifically relate to Nominee Holdings that consistently appear in the Top 30 of the register. They are significant, because practically every other regular Top 30 Holder has made no significant changes to their holdings in the period stretching from March of this year, right up until now.

Churn is the feature of Nominee trading, with no attempt to either selldown or increase their holdings - Despite the tabling of a resource up at Rocklands that has been declared by all and sundry to be a disappointment (no arguments there!) and a dud (plenty of arguments there!)


1. NOMINEE TRADING SUMMARY: for holders consistently placed within the Top 30

Month	ENTITY	Opening	OFF	ON	Balance
May	ANZ NOMINEES	3,714,195	1,611,344	1,071,991	3,174,842
June	ANZ NOMINEES	3,174,842	285,031	189,373	3,079,184
July	ANZ NOMINEES	3,079,184	743,478	783,538	3,119,244
Aug	ANZ NOMINEES	3,174,842	285,031	189,373	3,079,184
		TOTALS	2,924,884	2,234,275
May	CITICORP NOMINEES	1,968,809	1,520,973	1,360,888	1,808,724
June	CITICORP NOMINEES	1,702,030	10,030,596	9,338,361	1,009,795
July	CITICORP NOMINEES	1,111,789	10,487,442	10,698,567	1,322,914
Aug	CITICORP NOMINEES	1,427,496	12,344,658	12,426,067	1,508,905
		TOTALS	34,383,669	33,823,883
May	HSBC NOMINEES	6,395,798	1,669,127	703,674	5,430,345
June	HSBC NOMINEES	5,430,345	626,674	961,390	5,765,061
July	HSBC NOMINEES	5,765,061	1,103,045	984,591	5,646,607
Aug	HSBC NOMINEES	5,646,607	2,795,803	2,472,914	5,323,718
		TOTALS	6,194,649	5,122,569
May	J P MORGAN NOMINEES	4,025,882	311,346	893,531	4,608,067
June	J P MORGAN NOMINEES	4,608,067	177,802	220,902	4,651,167
July	J P MORGAN NOMINEES	4,651,167	543,518	559,526	4,667,175
Aug	J P MORGAN NOMINEES	4,667,175	1,473,772	1,201,665	4,395,068
		TOTALS	2,506,438	2,875,624
May	NATIONAL NOMINEES	4,648,711	1,239,986	1,382,555	4,791,280
June	NATIONAL NOMINEES	4,791,280	5,614,439	5,646,752	4,823,593
July	NATIONAL NOMINEES	4,823,593	6,090,238	5,727,034	4,460,389
Aug	NATIONAL NOMINEES	4,460,389	7,765,820	8,684,113	5,378,682
		TOTALS	20,710,483	21,440,454
May	UBS WEALTH MGMNT	608,102	20,361	34,499	622,240
June	UBS WEALTH MGMNT	622,240	81,428	23,500	564,312
July	UBS WEALTH MGMNT	564,312	24,072	0	540,240
Aug	UBS WEALTH MGMNT	540,240	55,000	10,860	496,100
		TOTALS	180,861	68,859

With the exception of UBS Wealth Management, churn is definitely a trend.....but why?

National and J P Morgan I have previously mentioned, but what is happening with Citycorp Nominees who is basically a minor Top 30 Holder, with a holding that averages around 1.5 million shares on the register? Why the outsized performance?

While the disappointing resource announcement may have contributed to volatility, no way did it inspire net selling by either the above Nominees, or the private entities in the Top 30 (who have mostly been aligned with the company's interests). As mentioned, the private holders all left their portfolios more or less unchanged despite any disappointment in relation to the announcement.

While the above doesn't portend to explain what is actually going on (or if something is going on at all) it does help to clarify what has been happening 'market wise' behind all of the smoke and mirrors and ......and mass confusion.

Normal market action? Somehow I don't think so, but who knows?

Cheers
Nev