Monday, December 10, 2012

Market Summary -- 10th Dec 12

FTSE STI closed 3,114.34, up 7.23 points or +0.23% with a total volume of 2.25b and a total value of S$1.11b.  Total number of advance vs decline was 232 vs 168.  Of the 30 component index stocks, 17 closed positive, 2 unchanged and 11 closed negative.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.880
2. JSH 500US$  +0.590
3. HKLand US$  +0.160
4. CityDev  +0.070
5. CapMallsAsia  +0.035

The top 5 loser component stocks were :-

1. Jardine C&C  -0.500
2. UOB  -0.300
3. SIA  -0.150
4. GLP  -0.070
5. SPH  -0.020
5. SembMar  -0.020
5. SIA Engg  -0.020
5. OCBC  -0.020

US markets closed mixed last Friday with DowJones and S&P500 positive while Nasdaq in the red dragged down by Apple.  Asian bourses were mostly positive due to events from last Friday and over the weekend.  Nikkei +0.07%, SSE +1.07% and HSI +0.39%.  STI rose 0.23% in heavy volume but thin value day.  17 of the 30 index stocks managed to register positive closing.

US created more jobs than expected in November and unemployment rate dropped to 7.7% providing the bright spot on Friday while Republican commenting that no progress was made for the fiscal cliff deal for last week was the negative event.  Over the weekend, China released its November industrial output and inflation data.  Both coming in higher than expected.  While the industrial output data is a good sign but inflation moving up to 2% was actually not.  Slowly rising inflation will no doubt let the Chinese Government to think twice of providing easing measures in the future.  China also released its export data this morning coming in way below expectation due to the problem in Europe and US.  Japan on the other hand sank into technical recession.  The mixture of events made regional bourses giving up earlier gain despite mostly close positive.

STI rose almost 1% on open but due to profit taking and fear of moving up without fundamental supporting eased the gain and only close +0.23%.  Investors will be looking at couple of events this week with Obama holding another talk with Republican to resolve the fiscal cliff and FOMC meeting this Tuesday and Wednesday.

Olam still in focus for the day and though share price rebounded 1.37%, the underlying fundamental issue still the same.  More interestingly was for past days, analysts and even Singapore mainstream media kept publishing a slightly more defensive report for Olam.  A report without much considering the worst case could happen to Olam especially when global economy goes into tailspin is nevertheless a worthy report.  A good and considerate report should take investors interest as priority analyzing all the possible outcome of Olam under all the extreme economy condition and put in appropriate advices to investors.  As such would strongly advise investors to study the risk involves themselves and treating those analysis and reports from mainstream media as noise and nothing else.  It is your money that is going in to the investment and should it turns sour, they are not responsible for you in losing in the investment.

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