Tuesday, May 28, 2013

Market Summary -- 28th May 13

FTSE STI closed 3,406.08, up 14.78 points or +0.44% with a total volume of 3.31b and a total value of S$1.45b.  Total number of advance vs decline was 300 vs 132.  Of the 30 component index stocks, 21 closed positive, 2 unchanged and 7 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +2.350
2. JSH 500US$  +0.520
3. JMH 400US$  +0.300
4. ST Engg  +0.090
5. HKLand US$  +0.080
5. SPH  +0.080

The top 5 loser component stocks were :-

1. UOB  -0.130
2. OCBC  -0.100
3. DBS  -0.090
4. KepCorp  -0.030
5. CapitaMall  -0.020

US markets were closed yesterday night but Europe markets managed to close positive.  Asian bourses entered into a more stabilize phase as compared with past days with all closing positive.  Nikkei +1.20%, SSE +1.24% and HSI +1.05%.  STI thought managed to close positive but was under-performing regional bourses with less than +1% closing.  Daily volume was higher than yesterday but value wise pretty much the same.  21 of the 30 index stocks posted positive closing.

Not much of an eventful day as there isn't any important global events and regional bourses after past days of volatile and selling down entering into a more stabilize phase with bargain hunting and short-covering coming in to push the stocks higher.

For STI though the blue chips ended mostly positive for the day but the main activity was on the penny stocks as can seen from daily volume rising.  The fear of Central Banks turning off the tap for monetary easing might have eased as it was a over-reaction from the markets.  Stop easing and tapering is of different thing.  The former might give market a shocker while the market is more prepared for the later especially when economy is improving.  A half-time break for the recent rally but it is not done yet, this is a time to consolidate and resume the 2nd leg up.  Do not try to second guess where the bottom is and when it will resume the rally, instead look at fundamental and valuation.  Remember it is a trader market and not an investment one.

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