Thursday, January 12, 2012

Market Summary -- 12th Jan 12

FTSE STI closed 2,743.66, down 3.47 points or -0.13% with a total volume of 1.15b and a total value of S$941M.  Total number of advance vs decline was 217 vs 247.  Of the 30 component, 10 closed positive, 17 closed negative and 3 remained unchanged.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.340
2. DBS  +0.260
3. UOB  +0.250
4. JSH 500US$  +0.220
5. StarHub  +0.030

The top 5 loser component stocks were :-

1. CityDev  -0.210
2. HKLand US$  -0.180
3. SIA  -0.130
4. SembMar  -0.110
5. Olam  -0.070
5. JMH400US$  -0.070

US markets closed mixed yesterday night and relatively flattish also with bank and tech stocks pushed up the index and eased earlier loss after US Fed's begie indicating US economy is recovering.  However, on the EU side, Germany last quarter GDP came in +0.25% and FY as 3% with possibility that Germany is on the brink of recession.  Asian bourses were in no mood of further gain as investors starting to get cautious.  Nikkei closed -0.74%, SSE 0.05% after reporting December inflation at 4.1% vs 4% and full year at 5.4% well above the 4% target.  HSI closed -0.30%.  STI struggling to keep up the gain closed -0.13% with only 10 of the 30 index stocks managed to register a gain.  Stock prices were mostly in indecisive mode as investors starting to stay cautiously optimistic as prices move up.

Italy and Spain will be doing bond auction tonight and ECB will announce its decision on rate.  US will be looking at economic data and corporate earning for rest of the week, in particular end of this week and next week when banks earning will be announced.

At this junction, it is not best to be over optimistic but rather cautiously optimistic even if US economic data showing improvement.  The underlying of US economy already wasted 2 years of recovering in particular the labour market and the existing EU debt crisis do not warrant investors to be over optimistic until economic data like 2011 GDP for US, EU and rest of the world and corporate earnings for last quarter are all out then will have a clearer picture of what happen in the month ahead.

No comments:

Post a Comment