Thursday, May 17, 2012

Market Summary -- 17th May 12

FTSE STI closed 2,822.61, down 8.54 points or -0.30% with a total volume of 1.20b and a total value of S$1.04b.  Total number of advance vs decline was 159 vs 194.  Of the 30 component index stocks, 10 closed positive, 4 remained unchanged and 16 closed negative.  The top 5 gainer component stocks were :-

1. SIA  +0.170
2. CityDev  +0.130
3. StarHub  +0.090
4. SembCorp  +0.070
5. ST Engg  +0.040

The top 5 loser component stocks were :-

1. JSH 500US$  -0.470
2. JMH 400US$  -0.400
3. Jardine C&C  -0.100
4. Wilmar  -0.070
5. Capitaland  -0.070

US markets gave up earlier gain due to better than expected housing start data and closed in the red as concern of Greece weighed on.  Asian bourses were mixed for the day with Nikkei and SSE closed positive with +0.86% and +1.39% respectively but HSI -0.31%.  STI fell 0.30% in a quiet trading day with only 10 of the index stocks managed to register positive closing.

Greece going for election in mid June and an interim government just form but with ECB pausing on lending to some of Greek banks with talk of possible exit weighed down on investors.  Greece exit Euro and default was not something news, in fact that possibility has been highlighted even last year but when the issue revisited now, markets seem panic over it.  There is a possibility of markets been over-reaction about it.

Singapore reported its 1Q GDP of +10% this morning better than expected and bringing 2012 GDP to +1.6% on year in line with expectation.  April non-oil export also came in better than expected at +13.1%.  These data eased some pressure on investors in the earlier part of the day as STI went into positive region.  However, when Europe opened in the red due to Greece issue, STI gave up the gain and closed in the red.  Defensive stocks which have been selling for past 2 days should be entering 50% done phase.  For STI perspective, it could fall another 2% to 2.5% from present level.

June will be a much more eventful month to watch with Greece election, EU Summit, US Fed meeting and not to forget end of 1H for fund managers to adjust their portfolio ( window dressing, but could be to the upside or downside depend on development in June ).

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