Wednesday, April 18, 2012

Market Summry -- 18th Apr 12

FTSE STI closed 3,000.58, up 13.99 points or +0.47% with a total volume of 1.67b and a total value of S$1.03b.  Total number of advance vs decline was 228 vs 162.  Of the 30 component index stocks, 23 closed positive, 5 closed negative and 2 remained unchanged.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.710
2. JMH 400US$  +0.310
3. UOB  +0.200
4. SIA  +0.180
5. JSH 500US$  +0.110

The 5 loser component stocks were :-

1. CityDev  -0.050
2. F&N  -0.040
3. Wilmar  -0.030
4. DBS  -0.020
5. GLP  -0.010

US markets rallied at least +1.50% yesterday night after some better than expected corporate earnings, successful Spanish bond auction and IMF raised 2012 growth target ( but with warning of risk still persist with regard to higher oil price and EU debt issue ).  Asian bourses taking the cue also traded higher for the day with Nikkei closed +2.14%, SSE +1.96% and HSI +1.06%.  STI closed +0.47% in thin volume days with total volume less than 2 billion with 23 of the index stocks registered positive closing.

Sentiment might be shifted away from being bearish but should not be overly optimistic either.  The speculation regarding Spain need bailout still persist.  Investors will also be looking at the coming IMF and G-20 meeting to see whether will IMF able to raise the bailout funds tapping from the G-20 nations especially the BRIC.  Furthermore, there is also speculation that next week US Fed meeting might be giving some hint of possible QE3.  While the March non-farm payroll was a set of disappointing data, US economy still recovering and it is never US Fed responsibilities to create jobs.  Hence, it will not be any surprise should there will no QE3 ( in fact it is better not to have QE3 than having one ).  Thus, for investors trying to speculate on stock markets regarding the QE3, advise is be cautious.

Singapore corporates continued to roll out presentable and firm earnings from A-Reit, CapitaMall, SGX, etc and hence that ease some bearish sentiment.  The lack of volume also indicating penny stocks play could be over and most retail investors still cautious on the blue chips.  Advise is to look at the fundamental from their respective earnings and so far those set of earnings do not warrant a cheap sale of the blue chips.

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