Friday, July 12, 2013

Market Summary -- 12th Jul 13

FTSE STI closed 3,236.06, down 12.86 points or -0.40% with a total volume of 2.58b and a total value of S$942M.  Total number of advance vs decline was 168 vs 215.  Of the 30 component index stocks, 7 closed positive, 5 unchanged and 18 in the red.  The top 5 gainer component stocks were :-

1. JSH 500US$  +0.770
2. JMH 400US$  +0.250
3. ST Engg  +0.050
4. SIA Engg  +0.040
5. SIA  +0.020

The top 5 loser component stocks were :-

1. UOB  -0.270
2. Jardine C&C  -0.250
3. DBS  -0.130
4. SingTel  -0.060
5. GLP  -0.040

US markets closed at least +1% yesterday due to US Fed Ben Bernanke's effect.  Asian bourses after yesterday rallied were mixed due to profit taking.  Nikkei +0.23%, SSE -1.62% and HSI -0.75%.  STI fell 0.40% in thin volume and value day.  Only 7 of the 30 index stocks posted gain.

The Ben Bernanke's effect of accommodative monetary policy still ring in investors' minds despite regional bourses mixed due to profit taking.  Sentiment might be positive but if the fundamental of the economy does not improve next, it will be another assets bubble burst.  Cheapness might be in the stock markets but also keep in mind the fundamental.

Singapore reported its 2Q GDP this morning coming in surprisingly beating all expectation with a +15.2% in 2Q vs +8.3% resulting in +3.7% yoy.  The strong number was due to strong growth in manufacturing sector and be mind that due to the open economy model, next quarter might see the dip.  The strong GDP number probable providing some cushion for profit taking after yesterday almost 2% surge.  Earning season for Singapore companies will commence next Monday and that should be what investors be focusing on.

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