Tuesday, December 11, 2012

Market Summary -- 11th Dec 12

FTSE STI closed 3,118.33, up 3.99 points or +0.13% with a total volume of 2.32b and a total value of S$1.08b.  Total number of advance vs decline was 181 vs 190.  Of the 30 component index stocks, 14 closed positive and 16 closed negative.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.520
2. JSH 500US$  +0.440
3. SIA  +0.070
4. OCBC  +0.050
5. StarHub  +0.050

The top 5 loser component stocks were :-

1. Jardine C&C  -0.420
2. UOB  -0.080
3. CityDev  -0.070
4. SembCorp  -0.060
5. KepCorp  -0.050

US markets closed slight positive yesterday mainly due to selective stocks move up as the US fiscal cliff deal still no progress.  Asian bourses were mixed for the day with Nikkei -0.09%, SSE -0.44% and HSI +0.21%.  STI rose as high as 3138 but gave up those gain and closed +0.13% only with heavy volume but thin value.  14 of the 30 index stocks managed to register positive closing.  It was also the 2nd day in a row STI closed lower that opening value.

The US fiscal cliff deal is currently dictating the market direction.  There could be 2 possible outcomes nearing end of the year due to the fiscal cliff.

1. Despite no progress so far on the deal, markets still holding up well as investors are optimistic a deal could be churned out before end of the year.  As such, be it a long-term of short-term solution, markets could be doing a sell on news after that.

2. As the clock ticks towards end of the year and still no solution, investors would start to get panic and selling down the markets.

The 3rd week of December should have a clearer view of which scenario is emerging.  However, there is another most optimistic view, markets move higher after from current level after the fiscal cliff deal is done before year end.  That is a possibility but at current level, there is a doubt on whether at such a level can the fundamental support it.

Most of STI activity for the day was on the penny and micro-penny and selective blue chips or those more fundamental stocks again experience spike up in volume on close suggesting possible fund managers still doing closing of book.

US FOMC meeting starting today is another event investors might be looking at apart from the fiscal cliff.  The concern is will US Fed continues the Operation Twist as it is expiring end of the month given that there is an unlimited QE3 ongoing and unemployment rate has been coming down.

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