Tuesday, June 12, 2012

Market Summary -- 12th Jun 12

FTSE STI closed 2,797.08, up 9.27 points or +0.33% with a total volume of 1.40b and a total value of S$1.03b.  Total number of advance vs decline was 134 vs 170.  Of the 30 component index stocks, 18 closed positive, 11 closed negative and 1 remained unchanged.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.320
2. UOB  +0.190
3. CityDev  +0.130
4. DBS  +0.120
5. KepCorp  +0.120

The top 5 loser component stocks were :-

1. JMH 400US$  -1.090
2. JSH 500US$  -0.590
3. SembCorp  -0.100
4. Wilmar  -0.070
5. GLP  -0.050

US markets gave up earlier gain and closed at least -1% yesterday night as after Spain's bailout investors shifted attention to Italy.  Asian bourses reacting to that with mostly in the red.  Nikkei closed -1.02%, SSE -0.70% and HSI -0.43%.  STI fared better as it managed to reverse loss to close +0.33% after European bourses opened positive.  Total volume and value for the day were much better than past days.  18 of the 30 index stocks registered positive closing.

After Spain's bailout, investors feared of Italy will be next, is that rationale ? Let put it this way, the more investors wanted to speculate on Italy and punished the stock markets, the more urgent EU leaders will be pushed to roll out measures to solve the EU debt crisis and that is nevertheless the best opportunity for investors to value or bargain hunt and then irrational and illogical sellers dumping the stocks.  EU debt crisis should be focus on how and what measures EU leaders will be coming out in the end of the month Summit to stimulate growth.  The other issues were of  not much of importance. 

STI managed to reverse loss in the last hour of trading as European bourses opened in positive region and property stocks led the rebound as speculation that with China easing, property companies with exposure to China's property will benefit.  Bargain hunting and short-covering sped up the rebound for the day.

Focus on the fundamental of the stocks, monitor closely the game changer events in Europe, have an eye on end of the month window dressing and position yourself for it, the rest are just noise which one has to filter off.

No comments:

Post a Comment