Friday, December 14, 2012

Market Summary -- 14th Dec 12

FTSE STI closed 3,168.43, up 11.88 points or +0.38% with a total volume of 2.1b and a total value of S$1.11b.  Total number of advance vs decline was 255 vs 149.  Of the 30 component index stocks, 8 closed negative, 5 unchanged and 17 closed positive. The top 5 gainer component stocks were :-

1. CityDev  +0.440
2. SIA Engg  +0.130
3. JMH 400US$  +0.100
4. GLP  +0.080
5. F&N  +0.050

The top 5 loser component stocks were :-

1. JSH 500US$  -0.680
2. Jardine C&C  -0.430
3. KepCorp  -0.050
4. SembMar  -0.010
5. ST Engg  -0.010
5. Wilmar  -0.010
5. Olam  -0.010

US markets fell at least 0.5% yesterday night with series of mix data from jobless claims and retail sales.  However, the still deadlock situation on the fiscal cliff weighed on.  Asian bourses were mixed for the day mostly up after China flash PMI data.  Nikkei -0.05%, SSE +4.32% and HSI +0.71%.  STI rose 0.38% in heavy volume but thin value.  17 of the 30 index stocks registered positive closing.

The deadlock of the fiscal cliff with possible negotiation going into the holiday period frustrated investors and starting to think whether a deal or no deal will make any difference now.  A deal should be a good sign but detail of the deal whether it is just a short-term solution delaying the cliff or a really long-term fix is the most important of the deal.  In Europe, the Banking Union finally taking shape with ECB as the supervisor from March 2013 onwards after EU leaders finally agreed on it.  Greece also get the nod to receive the next bailout fund.  HSBC released China flash PMI for December this morning and coming in at 50.9, improving from previous month indicating China economy is finally getting the momentum in rebound.  Hence, SSE jumped over 4% in reaction to that, the biggest 1 day advance for probably the past 1 year.  Asian bourses taking the sentiment and coupling with fund managers doing book closure for the year mostly ended higher.

STI making another new 52-week high mostly due to the blue chips being pumped up by fund managers.  Next week will be worth monitoring as most fund mangers might be start taking holiday leave and investors will again focus on the fiscal cliff.

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