Thursday, March 22, 2012

Market Summary -- 22nd Mar 12

FTSE STI closed 2,979.25, down 26.38 points or -0.88% with a total volume of 1.67b and a total value of S$1.02b.  Total number of advance vs decline was 128 vs 240.  Of the 30 component index stocks, 4 closed positive, 6 unchanged and 20 in the red.  The 4 gainer component stocks were :-

1. F&N  +0.130
2. GoldenAgr  +0.015
3. SIA Engg  +0.010
4. Starhub  +0.010

The top 5 loser component stocks were :-

1. JMH 400US$  -1.460
2. JSH 500US$  -1.040
3. Jardine C&C  -0.600
4. DBS  -0.250
5. UOB  -0.190

US markets closed mixed yesterday with DJ and S&P500 in the red while Nasdaq edged out a slight gain after a miss expectation of existing home sales data and concern of China economy slowing down.  Asian bourses were mixed for the day from 2 pieces of contrasting news.  Japan posted trade surplus indicating its economy is rebounding while HSBC flash estimate for China PMI indicated China manufacturing continued to contract.  Nikkei closed +0.40%, SSE -0.10% and HSI +0.22%.  STI closed -0.88% in a volume less than 2 billion but total value rebounded back to more than S$1 billion.  Of the 30 index stocks, only 4 managed to register positive closing.

For most of the time, STI was flattish but soon after European bourses opened and with continued fear of China economy slowing down, sinking them to at least 1% in the red, the selling pressure in STI piled up causing the index to lose ground and close -0.84% the worst among the regional bourses.  The selling down mostly due to day traders who earlier part of the days buying up and in fear of tonight US markets might continue to drop like European bourses, closing off position before the day.  As mentioned many a times, the concern of China economy slowing down is no longer a new events.  China Government already lowered its 2012 growth to +7.5% last month and the slowing down of China economy moreover increases the chance for China Government to speed up monetary easing.  Last month also mentioned from March to June, STI will be in consolidating mode and will be chances for investors to slowly accumulate on weakness or do via dollar-cost-averaging method.  During this period, attempting to be "bravo trader" doing aggressive trading with get nowhere and mostly being squeezed out by the market.  That view still remain valid.

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