Wednesday, February 1, 2012

Market Summary -- 1st Feb 12

FTSE STI closed 2,904.76, down 1.93 points or -0.07% with a total volume of 3.70b and a total value of S$1.39b.  Total number of advance vs decline was 263 vs 279.  Of the 30 component index stocks, 14 closed positive, 15 closed negative and 1 remained unchanged.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.410
2. JSH 500US$  +0.190
3. Wilmar  +0.100
4. CityDev  +0.070
5. SIA Engg  +0.070

The top 5 loser component stocks were :-

1. Jardine C&C  -0.370
2. KepCorp  -0.240
3. SIA  -0.140
4. F&N  -0.060
5. SembCorp  -0.050

US markets closed mixed yesterday in sea-saw day when initially opened in the positive but soon sank into the red after series of weak economic data but managed to ease the loss and with Nasdaq closed positive while DJ and S&P500 in the red.  A swing of 1% between positive and negative.  Asian bourses were practically flattish after yesterday window dressing.  Nikkei closed +0.08%, SSE -1.07% after reporting a strong Dec PMI data which investors read it as Chinese Government will not ease monetary policy so soon and HSI -0.28%.  STI at one point drop almost 1% but with European bourses opened positive managed to ease the loss to just -0.07% in another heavy volume day of more than 3 billion.  However, total value of the day was only S$1.39b indicating lot of penny play in action that churn out the high volume.

STI blue chips after strong rally in January, hitting overbought level probably pulling back in short-term for consolidation and attention switching to the penny or laggard stocks.  What is important now is after penny and laggard play will the attention switch back to blue chips ?  If so, the January rally will be sustainable.  Another point to note is that as of 31st Jan 2012, of the 30 STI component stocks, 10 of those have a golden cross sign ( 50d EMA cut up to 200d EMA ) and that is bullish in nature for those 10 stocks which at the moment is support the STI value.

Outside of Singapore, EU debt development will be closely monitor as in how Greece debt swap resolve and US economic data in particular this Friday the unemployment situation.  Earning season should end after February and that is a period whereby fund managers will be adjusting their portfolio thereby causing market to consolidate and range bound.

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