Wednesday, June 13, 2012

Market Summary -- 13th Jun 12

FTSE STI closed 2,786.88, down 10.20 points or -0.36% with a total volume of 1.44b and a total value of S$1.07b.  Total number of advance vs decline was 195 vs 141.  Of the 30 component index stocks, 10 closed positive, 5 remained unchanged and 15 closed negative.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.350
2. F&N  +0.050
3. OCBC  +0.050
4. SIA Engg  +0.040
5. CityDev  +0.030

The top 5 loser component stocks were :-

1. JMH 400US$  -0.930
2. JSH 500US$  -0.630
3. HKLand US$  -0.080
4. SGX  -0.070
5. SembMar  -0.060
5. DBS  -0.060

US markets reversed earlier loss and closed at least +1% after speculation of stimulus.  Asian bourses took the cue mostly traded in positive region for the day.  Nikkei closed +0.60%, SSE +1.27% and HSI +0.82%.  STI however bucked the trend given yesterday it went up instead of down, closed -0.36% in a slightly better total volume and value day.  10 of the 30 index stocks registered positive closing.

Speculation of US more stimulus ? QE3 ? Answer is NO.  Extension of Operation Twist maybe.  To bet on QE3, unfortunately betting on the wrong thing.  Stay focus on the core of the current issue that is EUROPE.  That will be the sound advice.

STI pretty much profit taking nothing else.  Investors stay focus on the core of the event that is Europe, focus on the fundamental of the stocks, keep option of 1H window dressing, game changer events in Europe and also keep option open that Geek's election and FOMC meeting might give negative news that cause another panic selling.  That means great opportunity to bargain hunt.

Never never ever to bet on stimulus from US.

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