Tuesday, July 16, 2013

Market Summary -- 16th Jul 13

FTSE STI closed 3,224.96, down 11.86 points or -0.37% with a total volume of 3.23b and a total value of S$922M.  Total number of advance vs decline was 208 vs 179.  Of the 30 component index stocks, 13 closed positive, 1 unchanged and 16 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.250
2. Kep Corp  +0.080
3. SembMar  +0.080
4. CityDev  +0.050
5. Semb Corp  +0.030

The top 5 loser component stocks were :-

1. JSH 500US$  -0.730
2. JMH 400US$  -0.490
3. OCBC  -0.120
4. UOB  -0.110
5. HKLand US$  -0.080

US markets again closed positive with DJ and S&P500 in another record high.  Asian bourses were mixed for the day with mostly positive.  Nikkei +0.64%, SSE +0.31% and HSI +0.04%.  STI unfortunately was the under-performing one with a -0.37% closing.  Total volume was high, more than 3 billion but total value was thin and of the 30 index stocks, only 13 registered positive closing.

US companies continued to report resilient earning resulting in US markets recorded another positive closing.  Asian bourses mostly tracking performance of US markets but investors also cautious of tonight when US Fed Chairman testifies in front of the congress.  Focus will be again on tapering, when to halt QE and when to raise interest rate.  Perhaps it is time that investors have to finally realize that tapering has to occur, QE has to halt and eventual interest rate has to hike if and only if economic condition warrants that to be so.  Over-reacting to those by selling down the market in panic fashion is never a wise move.

Singapore started earning season yesterday with those reported mostly in line with expectation.  Singapore stocks are in a crossroad now in which investors could not decide to buy due to fundamental or worry that US Fed stimulus will come to an end.  For the day, it was taking profit and maintaining cautious dominated ahead of tonight US Fed Chairman's testimony.  Interest mainly rotated to the penny stocks which punters punt for quick profit.  Should a reaction due to concerning tapering will start soon and selling down the market tomorrow, will be another chance to bargain hunt especially for those fundamental solid stocks with earning showing resilient for the past quarters.

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