spi premium , page-3

Another ex-dividend season soon, including 3 of 4 big banks next month. Holding physical shares can enjoy dividend, while hold future has the advantage of a fraction of the physical shares cost, but you cannot collect dividend. Since not as many companies to report as Feb/Aug cycle, the premium will maintain until Feb 2011.

The XAO/XJO discount and premium pattern might be worth to study. The only thing I remember was thatXJO turned from premium to discount in May 2007, ahead of 2007 peak.

During the rally from Mar 2009 to Oct 2009 first top, the discount almost disappeared.

But afterwards, the discount become widening, and our market go trading range. I don't know what it tells.

Could be small stocks outperform large stocks, which is bullish; or

Large stocks under-perform small stocks, which is bearish???

Or Standard and Poor has changed formula, or included some bad companies in the index.