Friday, June 28, 2013

Market Summary -- 28th Jun 13

FTSE STI closed 3,150.44, up 32.41 points or +1.04% with a total volume of 1.80b and a total value of S$1.72b.  Total number of advance vs decline was 262 vs 158.  Of the 30 component index stocks, 22 closed positive, 7 unchanged and 1 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +1.700
2. Jardine C&C  +0.510
3. UOB  +0.310
4. SIA  +0.240
5. CityDev  +0.190
5. HKLand US$  +0.190

The only loser component stocks were :-

1. Olam  -0.015

US markets closed about +0.70% yesterday after weekly jobless claims data fell and fear of US tapering eased.  Asian bourses ended the last trading day of 1H2013 mostly higher.  Nikkei +3.51%, SSE +1.50% and HSI +1.78%.  STI in line with regional bourses rose 1.04% but volume and value were thin.  22 of the 30 index stocks registered positive closing.

Just weeks ago most were feared of US Fed tapering and now seemed like everyone are coming out to negate the fact that US Fed will be tapering soon.  Interesting ? A 180 degree turn after global markets were battled down.  Something for you to ponder about over the weekend.  Asian bourses mostly ended higher due to 1H2013 window dressing.  If they are not positive about stock markets on the upside why they needed to window dress up all their portfolio ?  Practically all those events since late May after US Fed Chief's testimony were nothing but "own self scared own self" (Singlish term).  Fund managers were practically taking a spin and ended up a zero sum game for them.  The fact remains that should US economy is able to stand on its own without life support, US Fed should and will halt QE3 and interest rate should slowly move back towards the long run equilibrium level which is the correct way to do so.  Should the economy be able to self recover then corporate earning will be able to improve and stock prices will have positive upside.

STI ended the 1H2013 with a +1.04% window dressing but on a thin volume and value.  Most still cautious and sideline probably waiting for next month earning season to get some catalysts.  Earning season in the one to look out for next and some sectors should be able to maintain resilient earning and with the battled down stock prices, they are looking relatively attractive, in particular the high-yield stocks.

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