Monday, May 27, 2013

Market Summary -- 27th May 13

FTSE STI closed 3,391.30, down 1.87 or -0.06% with a total volume of 2.54b and a total value of S$1.37b. Total number of advance vs decline was 261 vs 135.  Of the 30 component index stocks, 10 closed positive, 3 unchanged and 17 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.250
2. DBS  +0.210
3. HKLand US$  +0.100
4. OCBC  +0.090
5. CapitaMall  +0.050
5. SIA Engg  +0.050

The top 5 loser component stocks were :-

1. Jardine C&C  -0.460
2. UOB  -0.240
3. JSH 500US$  -0.080
4. SGX  -0.040
5. KepCorp  -0.040

US closed flat last Friday and Asian bourses were mostly flat for the day.  Nikkei closed -3.22%, SSE +0.22% and HSI +0.30%.  STI unfortunately was in the red side giving up earlier gain to profit taking, closing -0.06%.  Daily volume and value were consistently with past weeks.  Only 10 of the 30 index stocks managed to register positive closing.

Reality check is the word now for global stock markets.  A timely wake-up call for the overly optimistic on Central Bankers loose monetary policy.  Stock prices have ran up exceeding fundamental but not to a certain that it will crash as global economy still weak in which Governments still supporting it with their fiscal policies.  Unless otherwise one of the bubble bursts, this pull back should be termed as healthy.

For STI, there isn't any incentive or catalysts to move up further, upside limited and need to pull back to regain that attractiveness.

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