Monday, February 13, 2012

Market Summary -- 13th Feb 12

FTSE STI closed 2,976.34, up 16.34 points or +0.55% with a total volume of 2.31b and a total value of S$1.31b.  Total number of advance vs decline was 349 vs 192.  Of the 30 component index stocks, 24 closed positive, 5 closed negative and 1 remained unchanged.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.500
2. JSH 500US$  +0.200
3. Wilmar  +0.130
4. SIA  +0.120
5. SembMar  +0.120

The 5 loser component stocks were :-

1. JMH 400US$  -0.480
2. HKLand US$  -0.140
3. F&N  -0.070
4. Olam  -0.040
5. NobleGrp  -0.005

US markets fell last Friday amid of the Greece issue.  Over the weekend, Greek Parliament approved the austerity measures and passed those as law according to the requirement of EU and IMF in order to secure the 2nd bailout funds.  Asian bourses were relief on the news and mostly closed positive.  Nikkei closed +0.58% despite GDP fell more than expected, SSE -0.01% weighing down by no easing of curbing of housing price and HSI +0.50%.  STI in line with regional bourses closed +0.55% with a shrinking of daily volume from the usual 3 billion to just 2.31 billion.

The Greece's news might bring temporary relief on the EU debt saga but not to be over optimistic as Greece could be a burden to EU 6 to 12 months down the road should the country requires a 3rd bailout funds.  The strict austerity measures might have met the requirement by EU/IMF but those will make it hard for Greece as a country to achieve growth in the mid-term.

STI volume has shrank as investors starting to stay cautious of penny stocks which have jumped up lately.  Investors are advised to be cautious on those penny stocks especially without much fundamental to talk about.  Instead, attention should focus back to the blue chips and laggard ( with strong fundamental ) as those stocks should be entering consolidation phase which present opportunity to accumulate.  This week investors will be focusing on this Friday Singapore Budget.  Expectation from the budget will be help to SMEs to ride over the slow growth period.

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