Monday, January 21, 2013

Market Summary -- 21st Jan 13

FTSE STI closed 3.221.32, up 10.10 points or +0.31% with a total volume of 5.33b and a total value of S$2.23b.  Total number of advance vs decline was 244 vs 190.  Of the 30 component index stocks, 9 closed positive negative, 2 unchanged and 19 closed positive.  The top 5 gainer component stocks were :-

1. JSH 500US$  +0.680
2. JMH 400US$  +0.650
3. F&N  +0.160
4. SGX  +0.150
5. SIA Engg  +0.110

The top 5 loser component stocks were :-

1. CityDev  -0.180
2. UOB  -0.130
3. SIA  -0.090
4. HKLand US$  -0.070
5. IHH  -0.045

US markets closed mixed last Friday as investors digested corporate earnings.  Asian bourses were mixed for the day given the lack of positive catalysts.  Nikkei -1.52% awaiting for BOJ decision on inflation target, SSE +0.48% and HSI -0.05%.  STI closed +0.31% in a volume and value higher than past days and 19 of the 30 index stocks registered positive closing.

Over the weekend, US Republicans proposed delaying the debt ceiling for 3 months to have more time for the Government to plan budget.  Investors will have to see whether that can be passed from both the House and Senate level.  Delaying the debt ceiling doesn't mean everything will be resolved.  US markets will be closed for tonight due to the inauguration of President Obama for his second term.

Asian bourses were much divided for the day between BOJ outcome on inflation target (most expected to raise to 2% and allow more room for stimulus), economic data and corporate earnings.  With the lacking of further postiive catalysts, profit taking and cautiousness result in mix closing of markets.

STI corporate earning will get into momentum this week as several of the blue chips will be announcing their result.  What dominated the headline for today was F&N.  Hitting new 52-week high with high volume which contributed to much of the daily volume and value, this was due to late into last Friday TCC raise the offer price from $8.88 to $9.55/share and since UOE didn't withdraw from the counter off nor raising the bid, according to SIC, it will begin auction today.  As such, investors drove up the price in anticipating of a bidding war from both TCC and OUE. 

This current earning season will be critical as it will dictate the direction of the market for the rest of the year.

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