Monday, May 20, 2013

Market Summary -- 20th May 13

FTSE STI closed 3,454.23, up 4.93 points or +0.14% with a total volume of 2.92b and a total value of S$1.22b.  Total number of advance vs decline was 239 vs 184.  Of the 30 component index stocks, 16 closed positive, 5 unchanged and 9 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.310
2. KepCorp  +0.140
3. HKLand US$  +0.120
4. CityDev  +0.100
5.  UOB  +0.080

The top 5 loser component stocks were :-

1. JMH 400US$  -1.320
2. JSH 500US$  -0.660
3. SIA  -0.080
4. SGX  -0.080
5. StarHub  -0.060

US markets closed positive last Friday with at least +0.80% allowing DJ and S&P500 hitting again new 5-years high.  Asian bourses taking the cue mostly closed positive for the day.  Nikkei +1.47%, SSE +0.77% and HSI +1.78%.  STI was pretty much flat with a +0.14% closing with consistent daily volume and value as past days.  16 of the 30 index stocks managed to register positive closing.

It was sentiment rather than fundamental that drove global markets higher.  The coordinated Central Banks' action which providing that excessive liquidity driving the global markets higher as investors chasing for yield. Fundamentally, slight improvement from the past might be there but the main core of the problems still remain unsolved.

STI was torn between profit taking and bargain hunting while dip resulting in flattish performance as compared with regional bourses.  Global markets are in need of a temporary break for the moment.  Another concern is noise is emerging from US Fed that possibility of putting a brake to the loose monetary policy.  Some think that might not have big impact for global stock markets but should various Central Banks also following then that is not something to be easily discounted.

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