Tuesday, January 31, 2012

Market Summary -- 31st Jan 12

FTSE STI closed 2,906.69, up 18.40 points or +0.64% with a total volume of 3.46b and a total value of S$1.96b.  Total number of advance vs decline was 424 vs 149.  Of the 30 component index stocks, 6 closed negative, 1 remained unchanged and 23 closed positive.  The top 5 gainer component stocks were :-

1. Jardine C&C  +1.560
2. JSH 500US$  +0.650
3. SembMar  +0.220
4. KepCorp  +0.150
5. UOB  +0.140

The top 5 loser component stocks were :-

1. JMH 400US$  -0.200
2. HKLand US$  -0.110
3. F&N  -0.100
4. CityDev  -0.070
5. Wilmar  -0.040

US markets closed negative yesterday night with average of -0.10% managed to rebound from low as concern of EU debt crisis and a weak personal spending data dented the sentiment.  Asian bourses having fell yesterday coming to end of the month window dressing closing mostly positive.  Nikkei closed +0.11%, SSE +0.33% and HSI +1.14%.  STI most of the time stayed in the negative region but managed to rebound back to positive near the last hour of trading closing +0.64% in a very huge volume day of 3.46b as fund managers window dressing for the recent purchase.  23 of the 30 index stocks closed positive and a lot of penny stocks were having high volume as probably investors switching out of the blue chips after moving up so much for the month and moving up the penny.

The strong activity from the penny stocks could be due to punting which is short-lived or fundamental but the important is after strong interest in the penny stocks will the interest switch back to the blue chips ?  If strong interest is to be switched back to blue chips, we can see further upside to the market.

In general global markets started off the first month of 2012 in a very positive way despite the ongoing issue of EU debt issue ( as again the outcome of the EU Summit yesterday presented nothing surprised ), the recovery of US economy in particular unemployment and the slowing down of Asia economy.  Those problems might not be totally resolved but the worst could be well over with global stock markets hitting the bottom in last October.  Do keep that option open and maintain possibility of that.  Cautiously optimistic should be the way rather than overly optimistic or pessimistic.

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