Tuesday, May 21, 2013

Market Summary -- 21st May 13

FTSE STI closed 3,443.90, down 10.33 points or -0.30% with a total volume of 2.56b and a total value of S$1.70b.  Total number of advance vs decline was 214 vs 209.  Of the 30 component index stocks, 13 closed positive and 17 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.890
2. JSH 500US$  +0.400
3. ComfortDelGro  +0.100
4. SIA Engg  +0.070
5. CapitaMall  +0.050

The top 5 loser component stocks were :-

1. DBS  -0.160
2. UOB  -0.100
3. SingTel  -0.090
4. SGX  -0.080
5. HKLand US$  -0.070

US markets closed down yesterday due to profit taking and investors feared of US could be stepping on the brake for monetary easing this year.  Asian bourses were mixed for the day with Nikkei +0.13%, SSE +0.22% and HSI -0.54%.  STI belongs to the group which closed negative, down 0.30%.  Only 13 of the 30 index stocks managed to register positive closing.

Concern of US Fed might step on the brake for monetary easing was an excuse for market to pull back, profit taking after weeks of scaling new high.  It is something that was badly needed, the pull back for market to adjust to its fundamental.  No surprise of that and in fact last Friday already warned for this week is profit taking week.

STI under selling pressure for the day was no surprise and the selling was not just on blue chips but on a broader market.  STI only drop 0.30% mainly due to JMH and JSH both cushioning a bigger drop in STI.  Might be scary but this is what it should be.  Pulling back to a certain level to consolidate before moving up again.  Half-time this is what was termed.  Short-term traders have to be cautious and not get caught.  Whenever there is over-reaction, there will be opportunity.

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