Tuesday, March 13, 2012

Market Summary -- 13th Mar 12

FTSE STI closed 2,989.07, up 26.89 points or +0.91% with a total volume of 1.29b and a total value of S$1.01b.  Total number of advance vs decline was 278 vs 102.  Of the 30 component index stocks, 22 closed positive, 4 closed negative and 4 remained unchanged.  The top 5 gainer component stocks were :-

1. JMH 400US$  +1.620
2. Jardine C&C  +0.750
3. UOB  +0.310
4. KepCorp  +0.180
5. HKLand US$  +0.110

The 4 loser component stocks were :-

1. JSH 500US$  -0.500
2. CityDev  -0.030
3. GoldenAgr  -0.725
4. CapitaMall  -0.010

US markets closed mixed yesterday night with Nasdaq in the red while DJ and S&P500 in positive.  There wasn't any important economic data yesterday or any economic events and US markets were having a day with very thin volume as investors pretty much undecide or confuse of current situation.  Asian bourses after past 2 days of selling off, all rebounded today with Nikkei closed +0.09%, SSE +0.86% and HSI +0.97%.  STI in a thin volume day in line with regional bourses closed +0.91% with 22 of the 30 index stocks registered positive closing.  Bargain hunting and perhaps some short-covering pushed the index up.

EU Finance Ministers finally approved of Greece's bailout funds and will release to Greece so that they could make bond interest payment on 20th March 2012.  Technically, according to ISDA rule Greece is in default ( orderly default ).  EU Finance Ministers also turned their focus on Spain in order not to allow it to follow the footstep of Greece.  There are also talking about EU could increase the EFSF by end of this month and that should bring some confidence back to the EU zone.  EU accordingly should be in mild recession and if the situation does not get worse of, there should not be anything to worry about.

US will have some important economic data to release this week like retail sales, CPI and PPI.  On top of that, tonight will be decision time for FOMC meeting.  There should be no surprise of low interest rate and investors perhaps is looking at cue from US Fed Chief of QE3.  Note, US should not allow QE3 at this moment.

On Singapore market, investors should look at current level of majority of the stocks.  Few weeks ago at current STI level, majority of the stocks were in overbought region whereas at the moment most of them have corrected down and some even in oversold region.  As mentioned before, to correct overbought signal, market needs not have a sharp drop and by range bound for a period of times, the overbought signal could slowly bring down to oversold region.  Should there be no any unexpected downside events/news, those oversold stocks should be preparing for a rebound soon especially those fundamental strong stocks.

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