Friday, March 23, 2012

Market Summary -- 23rd Mar 12

FTSE STI closed 2,990.08, up 10.83 points or +0.36% with a total volume of 1.64b and a total value of S$1.32b.  Total number of advance vs decline was 195 vs 160.  Of the 30 component index stocks, 16 closed positive, 6 remained unchanged and 8 closed negative.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.250
2. SembCorp  +0.120
3. Genting SP  +0.110
4. KepCorp +0.080
5. CapitaMall  +0.040
5. GLP  +0.040
5. SIA Engg  +0.020

The top 5 loser component stocks were :-

1. JSH 500US$  -0.100
2. DBS  -0.070
3. CityDev  -0.050
4. F&N  -0.030
5. ST Engg  -0.020
5. OCBC  -0.020

US markets fell average 0.5% yesterday night despite better than expected jobless claims data as concern of weak China and Europe manufacturing data weighed on investors.  Asian bourses were mostly down for the day with Nikkei closed -1.14%, SSE -1.10% and HSI -1.11%.  STI however bucked the trend with a +0.36% gain in a moderate volume day with 16 of the 30 index stocks managed to register positive closing.

Slowing down in China and Europe is not something unexpected.  China with projected GDP for this year to be +7.5% and trying to shift to consumption based from the past export driven economic model is not longer able to record 10%+ type of growth.  Europe with debt nations from Greece, Portugal, Italy and Spain should be in a mild recession and will take time to bottom out before EU economy can recover.  Hence, the economic data of slowing down is nothing to be surprised of and should not be over-react to it.

Singapore reported a February CPI of +4.6% better than the +5.0% expected and that news help lifted sentiment a bit when bargain hunters came back in after past days of selling down.  With European bourses opening in the positive rebounding from past days of selling down and US future market indicating positive start tonight, that helped lifted STI to positive position on close.  Markets in general should be position for a technical rebound as past days of selling down with old news is coming to a overdone situation.  While lacking any positive catalysts might cap the upside for rebound, nevertheless, market still in a range bound mode consolidating ahead of the earning season next month.

For short-term traders, range bound market is never for greedy ie not greedy for profit and strict discipline to cut loss.  For long-term investors, weakness in the market posed accumulation opportunities and should not be missed out.

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