Thursday, June 14, 2012

Market Summary -- 14th Jun 12

FTSE STI closed 2,773.81, down 13.07 points or -0.47% with a total volume of 1.02b and a total value of S$768M.  Total number of advance vs decline was 115 vs 216.  Of the 30 component index stocks, 7 closed positive, 4 remained unchanged and 19 closed negative.  The top 5 gainer component stocks were :-

1. CityDev  +0.060
2. GLP  +0.030
3. HKLand US$  +0.030
4. F&N  +0.020
5. JMH 400US$  +0.020
5. SembMar  +0.020

The top 5 loser component stocks were :-

1. Jardine C&C  -1.200
2. UOB  -0.170
3. JSH 500US$  -0.130
4. KepCorp  -0.100
5. SembCorp  -0.100

US markets closed in the red after a weaker than expected retail sales data and concern on EU debt crisis.  Asian bourses were mostly down for the day.  Nikkei closed -0.22%, SSE -0.99% and HSI -1.15%.  STI fell 0.47% with volume just over 1 billion but total value came in below S$1b level.  Only 7 of the index stocks managed to register positive closing.

It was pre-cautious ruled the day trading ahead of this Sunday Greek's election.  Investors taking off profit and stay side line until next week.  Will be a busy and eventful next week starting from Sunday Greek's election in which the outcome will determine whether Greece will stay inside Euro or not, then 19th - 20th will be US FOMC Meeting and G20 Summit.  While many expecting or hoping US Fed will announce stimulus next week, however, given the situation that current US Fed Chief will be stepping down next January and US Presidential election end of the year, any large scale stimulus is likely not possible.  Extension to current Operation Twist which expires end of this month probably will be the most likely.  From recent Fed's comment, the stand is clear that they will only act if required and also stating clearly that job creation is lawmakers' duty now.  G20 Summit should be focus on the EU debt crisis and that might bring some positive sentiment or laying ground work for end of the month EU Summit.  Do keep options open that market might have a panic selling or dip next week in reaction to Greek's election and US FOMC Meeting and downside probably cushion by outcome of G20 Summit.

For investors with high risk, that dip or panic selling might be opportunity to collect ahead of EU Summit and end of the month 1H window dressing or even till next month earning season play. 

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