Thursday, June 27, 2013

Market Summary -- 27th Jun 13

FTSE STI closed 3,118.03, up 13.63 points or +0.44% with a total volume of 1.78b and a total value of S$1.37b.  Total number of advance vs decline was 224 vs 163.  Of the 30 component index stocks, 16 closed positive, 3 unchanged and 11 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +1.800
2. Jardine C&C  +0.640
3. JSH 500US$  +0.350
4. HKLand US$  +0.170
5. SingTel  +0.120

The top 5 loser component stocks were :-

1. Kep Corp  -0.180
2. DBS  -0.160
3. CityDev  -0.130
4. SGX  -0.110
5. SIA  -0.090

US markets closed average +0.90% after a weaker than expected GDP data.  Asian bourses were mostly positive for the day taking the cue from US markets.  Nikkei +2.96%, SSE -0.08% and HSI +0.50%.  STI in line with regional bourses continued the rebound with a +0.44% closing.  Daily volume and value were thin and 16 of the 30 index stocks posted positive closing.

US 2Q GDP came in at +1.8% below expectation but the weak data was seen by investors as a sign that US Fed might not taper the QE3 soonest.  So far though US economic data have firmed up but still a distance away from showing US economy can actually stand on the foot of its own and the US Fed projection could be over estimated too.  China credit squeeze has eased a bit and investors get a sigh of relief from all these negative events.

STI was positive but the thin volume and value indicating still cautiousness in the markets.  Selective bargain hunting with tomorrow 1H2013 window dressing on sight followed by earning season in 2 weeks time.  Here something that should get investors really ponder about.  With the recent selling down, stock prices are relatively cheap and if US Fed tapers or halt stimulus meaning the economy is able to self-recover as such the fundamental of the economy should be improving.  If so, then from fundamental point of view and with current relatively cheaper stock prices, isn't that have more room for stock prices to move up next ?  Fund managers if looking at fundamental should be buying in and not selling at the moment.  Tomorrow window dressing and next month earning season will have lot of actions from fund managers.

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