Tuesday, July 10, 2012

Market Summary -- 10th Jul 12

FTSE STI closed 2,964.62, up 35.54 points or +1.21% with a total volume of 1.73b and a total value of S$1.13b.  Total number of advance vs decline was 253 vs 129.  Of the 30 component index stocks, 28 closed positive and 2 closed negative.  The top 5 gainer component stocks were :-

1. JMH 400US$  +1.180
2. Jardine C&C  +0.650
3. JSH 500US$  +0.320
4. UOB  +0.290
5. CityDev  +0.280

The 2 loser component stocks were :-

1. Wilmar  -0.040
2. HKLand US$  -0.040

US markets closed down at least 0.1% yesterday night as the awful job data last Friday still weighed on investors and European debt issue back in focus as EU Finance Ministers met.  Investors also cautious ahead of earning season.  After the bell, Aloca reported a better than expected earning.  Asian bourses mostly closed in the red with Nikkei closed -0.44%, SSE -0.29% after its June import data missed expectation and HSI -0.16%.  STI outperformed rest of the bourses with a +1.21% closing in moderate volume and total value back to above S$1b.  28 of the 30 index stocks registered positive closing.

Weak job data from US, weak China economic data and the ever ongoing EU debt crisis, that were valid for profit taking after markets surged up for 1 week.  Other than that nothing else.  On EU Finance Ministers meeting, the outcome was EU to speed up Spanish bank aid, ECB are ready to further rate cut and some detail on the forming of banking union.  Those were not specular news but enough to quiet down questions raised on the following through after EU Summit.

Main focus today on STI was Mapletreelog when one of its substantial shareholders Alliance Global Properties Ltd sold its entire 5.74% around the price of $0.96 and that caused the stock to drop more than 3% on open.  Apart from that, not much fundamental has changed for Mapletreelog and the dip should be a good chance to buy ahead of the earning with expectation of 1.70cents dividend.

Investors should focus on earning for STI companies and target those strong earning companies for the past 2 quarters and buy on weakness.

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