Star lady scales slippery slope to success

MAKING money in this market is like trying to climb a landslide. Your legs keep pumping, but the movement is down, down, down. The racers who did best were the ones who managed to grab onto whatever tenuous handhold they could to arrest their slide.

By InvestSMART · 25 Sep 2011

By InvestSMART ·
25 Sep 2011

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Miners absolutely tanked during the four weeks, plummeting 8.3 per cent. Banks didn't do much better, falling 6.9 per cent. Not good news for a market made up mostly of those two sectors. But the broader top 200 index slumped a mere 5.9 per cent. Why?

Well, after being the whipping horse for so long, industrial companies shone. You can imagine the sound of the dollar crashing below parity with the greenback would have been music to the ears of Aussie manufacturers and exporters.

Celestial queen Doreen Daze pipped chef Louise Jessop for top spot. Louise led coming into the final stretch but was tripped up by a 13 per cent fall in Catalpa Resources. That was enough for Doreen to shimmy her way to the top, off the back of an incredible 5.5 per cent gain in the Virgin Blue.

Dartboard was the best performer of the week and claimed third prize at the expense of Richard Pritchard who tumbled to second last. Architect Edwina Harrison finished well and reader Qaiser Malik did well in the market. In fact, the only racer to underperform the benchmark was financial manager James Killian who had the dubious distinction of owning two of the three worst performing stocks overall. Next week, new race!

Patrick Commins

If you would like to compete in the world's premier shares race, please email investor@fairfax.com.au. All welcome!

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Frequently Asked Questions about this Article…

What was the overall market performance described in the article?

The article describes a weak market period, likening it to 'trying to climb a landslide.' Over the four weeks the broader top‑200 index slumped about 5.9% as many stocks fell.

How did miners and banks perform during the downturn?

Miners performed particularly poorly, plunging 8.3% over the four weeks, while banks fell about 6.9%—both big contributors to the market weakness.

Why did some industrial and exporter stocks hold up better?

Industrials and exporters benefited from currency moves: the article says the Australian dollar crashed below parity with the US dollar, which helped Aussie manufacturers and exporters and softened the overall market decline.

Which individual stocks were highlighted as big movers?

The piece names Catalpa Resources (a 13% fall) and Virgin Blue (a 5.5% gain). It also notes an unnamed 'Dartboard' stock was the best performer of the week.

Who were the top and bottom performers in the shares race featured in the article?

Celestial queen Doreen Daze took top spot, narrowly beating Louise Jessop (who was hampered by Catalpa's 13% drop). Dartboard claimed third for the week. Financial manager James Killian underperformed the benchmark and owned two of the three worst‑performing stocks.

What metaphor does the article use to describe making money in this market?

The article uses the image of 'trying to climb a landslide'—legs pumping but still sliding downward—to describe how difficult it has been to make money in the current market environment.

How did the market composition influence the index fall?

Because the market is heavily weighted toward miners and banks—two sectors that fell sharply—the headline weakness was driven by those sectors. However, industrial companies' stronger performance helped limit the top‑200 index's decline to about 5.9%.

How can readers join the shares race mentioned in the article?

The article invites readers to compete in the shares race by emailing investor@fairfax.com.au, noting 'all welcome' and that a new race starts next week.