Wednesday, January 11, 2012

Market Summary -- 11th Jan 12

FTSE STI closed 2,742.36, up 22.53 points or +0.83% with a total volume of 1.32b and a total value of S$1.34b.  Total number of advance vs decline was 318 vs 162.  Of the 30 component index stocks, 22 closed positive, 7 closed negative and 1 remained unchanged.  The top 5 gainer component stocks were :-

1. JMH 400US$  +1.130
2. UOB  +0.350
3. DBS  +0.260
4. SembMar  +0.220
5. JSH 500US$  +0.170
5. KepCorp  +0.170

The top 5 loser component stocks were :-

1. Jardine C&C  -0.210
2. OCBC  -0.070
3. SPH  -0.030
4. CapitaMall  -0.020
5. SGX  -0.010

US markets closed at least +0.5% yesterday night hitting 5 months high cheered by Alcoa's earning but all lowered then intra-day high of at least +1.0%.  Asian bourses taking the cue mostly traded in the positive region with Nikkei closed +0.30%, SSE -0.42% due to profit taking after past 2 sessions of more than 4% rally and HSI +0.78%.  STI was another of those managed to close positive with a +0.83% gain with total volume and value all better than past days and weeks.  The increased in volume and value could be indicating money flowing into STI as higher beta stocks like those in offshore/marine and property continued to lead STI in the up. 

SPH reported its earning yesterday night after market closing commencing of STI earning season.  However, profit dropped as compared to the same quarter previous year due to printing revenue shrink.  SPH fell 3 cents in today trading.  While investors are optimistic about US economy recovery and robust companies' earning, do have to be cautious as not to get over optimistic.  End of this week and next week, US banks will be reporting their earning and this will be much in focus and could swing US markets higher or correct down.  In general, fundamentally global issues did not get worse as compared to September last year but EU debt crisis still exist.  Investors should be cautiously optimistic especially after stock markets have advanced so much since start of the year.

Investors should wait till earning season finished and around March period whereby 2011 GDP figure is finalized then analyzing overall situation rather than starting to get over optimistic or over pessimistic now.  Asian markets could also possible be rallying before CNY.

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