Monday, July 9, 2012

Market Summary -- 9th Jul 12

FTSE STI closed 2,929.08, down 49.47 points or -1.66% with a total volume of 1.49b and a total value of S$830M.  Total number of advance vs decline was 105 vs 282.  Of the 30 component index stocks, 2 closed positive, 27 closed negative and 1 remained unchanged.  The 2 gainer component stocks were :-

1. StarHub  +0.030
2. GLP  +0.010

The top 5 loser component stocks were :-

1. Jardine C&C  -2.090
2. JSH 500US$  -0.520
3. UOB  -0.430
4. JMH 400US$  -0.420
5. CityDev  -0.250

US markets fell average 1% last Friday after a worse than expected non-farm payroll data with number of jobs created came in only at 80,000 below expectation while unemployment rate maintained at 8.2%.  Asian bourses all in the red for the day with Nikkei closed -1.37%, SSE -2.37% after reporting CPI came in +2.2% better than expected but Premier Wen Jiabao over the weekend comment on maintaining property curb sent out negative sentiment to investors.  HSI closed -1.88%.  STI in line with regional bourses closed -1.66% in moderate volume but total value of the day came in below S$1b.  Only 2 of the 30 index stocks managed to register positive closing.

It is now a situation whereby whether you looking at the bad or good news.  Too optimistic or pessimistic will get caught.  US bad job data is not something surprising or new, US need lawmakers to come out job creation bill to rectify that.  The European debt crisis back in focus when investors realized those measures proposed during last month EU Summit takes time to implement and as early as could beginning of next year.  EU Finance Ministers will be having a 2 days meeting starting today to follow up on those measures.  Don't be too negative on EU debt crisis.  China inflation coming down and that allows Chinese Government more room to do monetary easing.

Investors should focus on corporate earning now with US's Aloca starting today and Singapore SPH on 13th Jul.  Need to do some homework to research on past 2 quarters of the earning to check whether resilient and position yourself for earning play.  Remember do not chase the price, wait pull back see where the support and only target those companies with resilient earning and buy into weakness

1 comment:

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