Tuesday, February 14, 2012

Market Summary -- 14th Feb 12

FTSE STI closed 2,987.41, up 11.07 points or +0.37% with a total volume of 2.34b and a total value of S$1.50b.  Total number of advance vs decline was 236 vs 286.  Of the 30 component index stocks, 13 closed positive, 12 closed negative and 5 remained unchanged.  The top 5 gainer component stocks were :-

1. Jardine C&C  +1.100
2. JMH 400US$  +0.860
3. HKLand US$  +0.120
4. DBS  +0.080
5. Wilmar  +0.080

The top 5 loser component stocks were :-

1. JSH 500US$  -0.140
2. OCBC  -0.080
3. CityDev  -0.070
4. SGX  -0.040
5. SingTel  -0.030

US markets closed positive yesterday night with at least +0.60% gain as investors reacted to the news from Greece about Greek Parliament passed the austerity measures as bills.  Asian bourses initially were traded in negative region after news of Moodys downgrading 6 EU nations including Italy, Spain and Portugal and considering downgrading of France and UK of their AAA rating too.  However, some managed to rebound and closed positive.  Nikkei closed +0.59% after BOJ added stimulus and set 1% inflation target, SSE -0.30% and HSI +0.15%.  STI hit an intra-day low of 2,955 and managed to rebound closing +0.37% in a moderate daily volume of 2.34b with 13 of the 30 index stocks registered positive closing.  Volume was way less than the 3 billion mark indicating penny play activities have declined and investors should be cautious of those penny stocks without much fundamental.

With most of the blue chips earning already out, STI at the moment is range bound doing consolidation especially for the blue chips.  What investors need to take note is those blue chips with golden cross ( 50d-200d, 50d-100d or 100d-200d, etc ) as those are the one with sustainable support should market pull back and lookout for buying opportunity.

The Greece saga is yet to fully closed on the 2nd bailout as 15th Feb will be the decision by EU Finance Ministers to approve the release of the bailout funds or not.  Investors need to take a deeper look on the outcome of whether Greece getting the bailout or going default.

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