Thursday, July 5, 2012

Market Summary -- 5th Jul 12

FTSE STI closed 2,971.47, up 22.70 points or +0.77% with a total volume of 1.46b and a total value of S$1.02b.  Total number of advance vs decline was 208 vs 119.  Of the 30 component index stocks, 25 closed positive and 5 closed negative.  The top 5 gainer component stocks were :-

1. Jardine C&C  +1.070
2. JMH 400US$  +0.680
3. UOB  +0.230
4. F&N  +0.140
5. SIA  +0.100

The 5 loser component stocks were :-

1. JSH 500US$  -0.100
2. DBS  -0.090
3. Wilmar  -0.010
4. SGX  -0.010
5. Olam  -0.010

US markets closed for holiday yesterday while European bourses were mixed and flattish.  Asian bourses were mixed for the day with Nikkei closed -0.27%, SSE -1.17% and HSI +0.50%.  STI did better than regional bourses with a +0.77% closing in moderate volume and total value continued to exceed S$1b.  25 of the 30 index stocks managed to register positive closing.

Investors are speculating ECB would cut interest rate tonight to 0.75% and further China monetary easing coming the way.  As for whether US Fed will do another QE is debatable as to whether it is useful rather than is it necessary.  Just 2 issues need to focus on for the day.

1. Investors anticipation of monetary easing from ECB, China and Fed and hence play up the markets.  As the prices rally higher, there is a high chance of sell on news scenario and hence short-term play better be cautious and not get caught.

2. Most of the S-Reit have been played up recently with anticipation of coming earning to be resilient and also analysts for past weeks kept stressing of defensive and high-yield play.  As the prices move higher, the dividend yield will get lower.  At current price, S-Reit no longer look attractive for long term investment purpose but rather attractive for short-term play. 

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