dump, page-5

There is rumour in the market that one of the large value investment funds is liquidating $800m of assets today. If this was an isolated CNP dump (and not a prolonged sell off all day), it could be related. No specific mention on CNP or CER, but they certainly fall into the 'value investor' category.

0121 GMT [Dow Jones] S&P/ASX 200 down 0.6% at 5337.0, earlier hit 5310.1 amid speculation a domestic value fund has lost an A$800 million mandate. "There's talk of a large transition flow, that a domestic value fund had a chunk of money taken off them and that positions are being liquidated in some of the value names," says senior institutional trader. Notes steep falls in value names including Amcor (AMC.AU), Paperlinx (PPX.AU), Futuris (FCL.AU), Downer (DOW.AU), Asciano (AIO.AU), Foster's (FGL.AU), Ten (TEN.AU), Consolidated Media CMJ.AU), Coca-Cola Amatil (CCL.AU), Crown (CWN.AU), WA News (WAN.AU), Brambles (BXB.AU). If today's selling is driven by the loss of a mandate, it's unlikely to have a lasting impact on the market. There's also scattered talk that a major bank is planning a capital raising. (DWR)