Friday, May 31, 2013

Market Summary -- 31st May 13

FTSE STI closed 3,311.37, down 24.64 points or -0.74% with a total volume of 3.31b and a total value of S$3.41b.  Total number of advance vs decline was 169 vs 249.  Of the 30 component index stocks, 6 closed positive, 2 unchanged and 22 in the red.  The top 5 gainer component stocks were :-

1. UOB  +0.220
2. DBS  +0.190
3. GLP  +0.060
4. CapitaMall  +0.010
5. HKLand US$  +0.010

The top 5 loser component stocks were :-

1. JMH 400US$  -0.890
2. JSH 500US$  -0.540
3. OCBC  -0.250
4. SGX  -0.200
5. Kep Corp  -0.170

US markets rebounded yesterday with at least 0.1% gain after jobless claims and GDP data.  Asian bourses were mostly down for the last day of May.  Nikkei +1.37%, SSE -0.73% and HSI -0.41%.  STI following most of the regional bourses ended with a 0.74% drop in a strong value day relative to volume.  Only 6 of the 30 index stocks managed to register positive closing.

US weekly jobless claims rose more than expected and 2Q GDP came in at +2.4% as compared with +2.5%, the relatively weak set of data sort of put some relief to investors that US Fed will not taper stimulus so soon.  For Asian bourses it was all about fund managers adjusting their portfolio for the month end window dressing with most preferred to sell and lock in realized gain.

STI was under selling pressure from the beginning of the bell with blue chips and high-yield stocks again under selling pressure.  A possible scenario has now opened in that fund managers locking in profit in their portfolio and with stock prices hitting relatively cheap level and if comes June no news of US Fed tapering soon, fund managers will have no choice and jump back in again.  This situation no doubt presenting short-term investors an opportunity to buy on weakness.

No comments:

Post a Comment