Monday, June 11, 2012

Market Summary -- 11th Jun 12

FTSE STI closed 2,787.81, up 49.92 points or +1.82% with a total volume of 1.13b and a total value of S$874M.  Total number of advance vs decline was 261 vs 98.  Of the 30 component index stocks, 27 closed positive, 1 closed negative and 2 remained unchanged.  The top 5 gainer component stocks were :-

1. JMH 400US$  +1.560
2. Jardine C&C  +0.950
3. UOB  +0.380
4. KepCorp  +0.270
5. CityDev  +0.200
5. SembCorp  +0.200

The only loser component stocks was :-

1. JSH 500US$  -0.100

US markets closed positive last Friday in anticipation of good news coming out over the weekend from Europe when EU Finance Ministers were to hold conference call regarding Spain's bailout.  Over the weekend, news confirmed Spain needed 100 billion euro for bailout and the funds are ready to give it out to Spain once requested.  China also released economic data over the weekend with CPI for last month dropped to 3%, retail sales data fell but export data fared better than expected.  Series of the good news in particular Spain's bailout rallied Asian bourses for the day.  Nikkei closed +1.96%, SSE +1.07% and HSI +2.44%.  STI closed +1.82% with a slightly heavy volume then past days and 27 of the index stocks managed to register positive closing.

Spanish's bailout indeed put off some pressure weighing on the crisis in EU but EU still need to focus on measures or policies to spark growth.  The game changer events will be on the "growth" word from the EU nations.  The economic data released by China over the weekend were pretty much mixed.  Inflation has gone down which is a good sign as Chinese Government will have more room to ease policy as the continue weak economic data continue to weigh on the growth.

STI rebounded 1.82% with mostly due to short-covering.  Very cautious and little bargain hunting activities were detected.  Funds still packing the upside so that they could have better control of the price movement in reaction to coming events.  Do have the option opens that STI might have one more panic selling probably in reaction to outcome of Greek election and a no-go from US Fed on stimulus in the coming FOMC meeting.  That dip would be opportunity to collect for the game changer in Europe, end of the month 1H window dressing and next month earning season.

No comments:

Post a Comment