The four-times PGA Tour winner, who twisted his right ankle on Monday while walking with his wife, fired a three-under-par 67 at Waialae Country Club in Honolulu for an eight-under total of 132. That left Allenby tied for second with Americans Chad Campbell (64) and defending champion Zach Johnson (67), a stroke behind pacesetting Ryan Palmer of the US who birdied three of the last four holes for a 66.
World No.3 Steve Stricker carded a 67 to share fifth place with fellow Americans John Merrick (68) and Jeff Quinney (67) while Masters champion Angel Cabrera of Argentina (68) was among a group of four bunched at six under.
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Hide AdDespite finding only five fairways off the tee, Allenby scrambled superbly on another breezy day of sunshine at Waialae, saving par three times from bunkers and needing only 26 putts to stay in touch with the lead.
Twice winner Ernie Els carded a 70 to lie eight strokes off the pace while 2005 champion Vijay Singh battled to a 72 to make the cut.