Tuesday, January 17, 2012

Market Summary -- 17th Jan 12

FTSE STI closed 2,815.85, up 59.36 points or +2.15% with a total volume of 1.62b and a total value of S$1.47b.  Total number of advance vs decline was 370 vs 118.  Of the 30 component index stocks, 27 closed positive, 1 closed negative and 2 remained unchanged.  The top 5 gainer component stocks were :-

1. JMH 400US$  +1.580
2. Jardine C&C  +1.200
3. UOB  +0.570
4. JSH 500US$  +0.400
5. DBS  +0.340

The only loser component stock was :-

1. SingTel  -0.010

US markets were closed for holiday yesterday but European bourses closed in the positive after S&P rating downgrade on Friday.  French bond auction was well received after the downgrade.  After market closed, S&P again downgrade EFSF rating.  Asian bourses after yesterday selling off due to the downgrade rebounded today.  They get further boost after China better than expected GDP figure which eased concern of hard landing.  Nikkei closed +1.05%, SSE +4.18% and HSI +3.24%.  STI in a better volume day closed +2.15% crossing the 2,800 level with 27 of the 30 index stocks registered positive closing.

China 4Q GDP came in at +8.9% better than the expected +8.7% and making 2011 GDP +9.2% vs 2010 GDP +10.4%.  China economy is slowing down but avoid a hard landing scenario ( a situation when GDP hit +7% and below ) and speculation that Chinese Government will loosen monetary policy to boost growth.  Europe side the downgrade of EFSF rating ( EU Governments contribute to the EFSF rather than private investors, why there should be a rating ? ) impact pretty much limited for the time being.  US markets will be reopened tonight and investors will be looking at the reaction to China GDP figure ( with future all in the positive ), corporate earning and economic data.  The talk between Greece Government and investors regarding the debt swap will be resume tomorrow.

Singapore this morning reported a surprise better than expected December non-oil export data of +9.0% vs -1.2% expected.  While there isn't any pessimistic events to the worry about investors should not be too carried away by those better than expected economic data.  Cautiously optimistic should be the case.

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