'Fire-sale' predictions prove wide of mark as Magic Millions select sessions end on high.

Byline: By Mike Hedge

PREDICTIONS of economic disaster and a 'fire-sale' market at Australia's first yearling auction of the year had mostly been brushed aside by the time the surprisingly buoyant premium section of the Magic Millions sale concluded on Saturday.

Figures may have been down in a number of areas, in particular the aggregate, which fell by 40 per cent from AEUR107 million achieved in 2008 to AEUR66.2m (pounds 30m/EUR34m), although this can in part be explained by a 200-lot smaller catalogue. Both average and median prices and clearance rate left Magic Millions partowner John Singleton and managing director David Chester pleasantly surprised.

Singleton declared himself delighted with the final result, which included a median AEUR10,000 higher than at the corresponding sale last year.

"It's the only economic indicator that's got me bluffed," said Singleton. "No-one would have picked that, not one of us believed that would happen.

"It's gone against the trend of the stock market, inflation rate, unemployment figures and the sales of Europe and Kentucky. It's just an amazing result."

The average for the 503 yearlings sold during the four select sessions finished at AEUR131,632 (pounds 60,000/EUR68,000), a fall of 16 per cent from AEUR157,321 a year ago. The top price of AEUR2m, paid by Gai Waterhouse - the select session's leading buyer, with 28 bought for AEUR7m (pounds 3.2m/EUR3.6m) - for a brother to multiple Group 1 winner Racing To Win, was AEUR200,000 down on last year's sale-topper.

But Magic Millions managing director David Chester, who along with Singleton had been high on pre-sale pessimism, said the outstanding clearance rate of more than 80 per cent had gone against all predictions.

"I think what it has done has showed the rest of the sales, right around the country, that it is possible and things might not be as bad as everyone thought," said Chester. "I think the whole sale has been a lot better than anyone has expected.

"We've had two or three vendors who have had 100 per cent clearance and that doesn't happen very much.

"Horses are being bought by buyers from all over Asia and parts of Europe; the buying bench has been really good, the Japanese couldn't believe how strong the market was. Some of the good horses wouldn't have made any more last year."

Signs emerged, however, that the global economic crisis had caused an impact in some areas.

A year ago the Australian mining magnate Nathan Tinkler announced his arrival on the bloodstock scene with a AEUR20m splurge on 59 yearlings at the Magic Millions, a spending spree that continued through the US, Japan and Europe.

This year he was far quieter, spending EUR1.875m on 11 yearlings.

In contrast, one of the bigger buyers was Sydney trainer Anthony Cummings, who lost more than 100 of Tinkler's horses when the pair split late last year.

Cummings' buying indicated that the parting of ways had not left him in any difficulty, as he ended up as the third biggest buyer over the four sessions, taking home 19 yearlings at a cost of AEUR2.67m.

The Hong Kong Jockey Club was the second leading buyer, with 19 lots bought for AEUR3.4m ( pounds 1.5m/ EUR1.7m). It's activity at Magic Millions provided a whiff of controversy for the week, prompting suggestions the organisation would boycott the Inglis Easter Sale in Sydney, traditionally Australia's premier yearling sale.

Speculation is rife that the club filled its order book in Queensland and will not buy any horses in Sydney in response to the Racing NSW decision to grant jockey Chris Munce a licence to ride while he is disqualified in Hong Kong.

Munce had been jailed in Hong Kong over a cash-for-tips scandal and was then disqualified upon his release from prison.

Racing NSW angered Hong Kong officials by its contravention of an international reciprocity agreement by licensing Munce.

Former Newmarket-based trainer Mark Wallace, who has recently relocated to Australia, bought two lots - an Encosta De Lago filly bought in association with Blue Sky Thoroughbreds for AEUR180,000 (pounds 83,000/ EUR94,000), and a Fastnet Rock filly for AEUR170,000 (pounds 78,000/ EUR89,000) with the help of BBA Ireland.

Coolmore did not sign for any lots, while Darley bought only one, a colt by Redoute's Choice for AEUR600,000 (pounds 278,000)/EUR315,000.

Redoute's Choice finished the select sessions as the leading sire by average - 15 lots sold by him averaged AEUR500,000 (pounds 231,000/ EUR262,000). The leading shuttle stallion was Danehill Dancer, whose 14 lots sold at an average of AEUR197,500 (pounds 91,000/ EUR103,000).

ALTHOUGH yesterday's fifth session of the Magic Millions Yearling Sale, the 'select 2' part of the sale, came under a select banner, trade was conducted at a vastly reduced scale to that of the preceding sessions.

However, the numbers remained impressive given the current climate. The day's average of AEUR38,034 for 143 horses sold was an increase of 18 percent compared to 2008, and while the aggregate of AEUR5,439,000 was a percentage point down on the previous year, this was achieved with a 60-lot fewer catalogue. Even the clearance rate improved from 2008's 78 per cent to 82 per cent.

The horses did not measure up quality-wise to those offered through earlier sessions, and only eight horses made more than AEUR100,000. The top price of AEUR165,000 was given by De Burgh Equine for a filly by first-season Coolmore sire Oratorio.

CAPTION(S):

Mark Wallace: bought two fillies for total of AEUR350,000