Monday, July 15, 2013

Market Summary -- 15th Jul 13

FTSE STI closed 3,236.82, up 0.76 points or +0.02% with a total volume of 1.97b and a total value of S$926M.  Total number of advance vs decline was 174 vs 214.  Of the 30 component index stocks, 13 closed positive, 7 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. UOB  +0.200
2. DBS  +0.110
3. GLP  +0.070
4. SGX  +0.040
5. Olam  +0.035

The top 5 loser component stocks were :-

1. JSH 500US$  -1.070
2. JMH 400US$  -0.590
3. Jardine C&C  -0.250
4. CityDev  -0.180
5. SingTel  -0.030
5. Semb Corp  -0.030
5. OCBC  -0.030

US markets closed positive last Friday with record high for DJ and S&P500 after better than expected earning from banks.  Asian bourses were range bound for the day but ended mostly positive.  Nikkei +0.23%, SSE +0.98% and HSI +0.12%.  STI swinging between positive and negative closed flat in another thin volume and value day.  13 of the 30 index stocks posted gain.

It was the day in which all eyes were on China when it released its GDP this morning.  It came in +7.5% in line with expectation but down from +7.7% in the 1Q2013.  Concerns were can it meet the +7.5% GDP full year target.  Industrial production was below expectation but retail sales came in better than last year.  It was a sign China economy is slowly transforming to quality, slow and sustainable model in which it focuses on consumer and services rather than the old model of highly dependent on export.  GDP 7.5% might be concern for most now, but in actual fact a successful consumer and services based economy model should not be able to achieve such a high figure of GDP.  This is something most need to tune the mindset now.

Singapore will begin its earning season today with SPH, Kep REIT and K-Green Trust all schedule to release their earning after market close.  A sense of cautiousness was found in STI as short-term traders booking profit while most choose to wait for earning as a form of catalysts to re-enter the market.  What to look out for is resilient in corporate earning and not so much of whether they will beat or miss analysts' expectation (how accurate and reliable are those expectations anyway ?)  Earning season is underway, market will behave on its own tracking corporate earning more than tracking regional bourses' performance.

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