Tuesday, July 30, 2013

Market Summary -- 30th Jul 13

FTSE STI closed 3,245.45, up 8.48 points or +0.26% with a total volume of 2.04b and a total value of S$1.13b.  Total number of advance vs decline was 184 vs 183.  Of the 30 component index stocks, 18 closed positive, 3 unchanged and 9 in the red.  The top 5 gainer component stocks were :-

1. StarHub  +0.130
2. CityDev  +0.940
3. OCBC  +0.100
4. JMH 400US$  +0.060
5. SembMar  +0.050
5. SGX  +0.050

The top 5 loser component stocks were :-

1. Jardine C&C  -0.280
2. SIA  -0.120
3. Kep Corp  -0.070
4. ST Engg  -0.040
5. DBS  -0.040

US markets fell average 0.3% yesterday after weak housing data and cautious ahead of US Fed FOMC 2-days meeting.  Asian bourses initially in the red but managed to recover and closed mostly positive with Nikkei +1.53%, SSE +0.70% and HSI +0.48%.  STI like regional bourses swing to red but managed to recover the loss and close +0.26% in another of those thin volume and value day.  18 of the 30 index stocks posted gain.

Japan reported several economic data today with jobless week dropped to 3.9%, better than expectation but industrial production and personal spending fell more than expected for June.  The data initially sent regional bourses to the red but all managed to recover to close positive.  The weak data caused concern of will Japan return to recession again ?  Investors are keeping on close watch of the 2-day US FOMC meeting starting today.  While expectation monetary policy as remained status quo at the moment, all eyes will be on when and the detail of tapering.  It will be better to look beyond of tapering rather than looking at short-term of when it will start taper.  After all, should a tapering occur would mean US economy is gaining traction and that should be good news.

STI with the blue chips leading the index higher but most of the stocks still in range bound mode as cautiousness sit in and investors mostly directionless, lacking of firm catalysts.  Tomorrow is the last day of the month, month end window dressing and will be interesting to see how the fund mangers going to window dress their portfolio.  A sell down on fundamental stocks due to window dressing, which is not a bad news will be good bargain hunting opportunity.  On the surface it is directionless and range bound, another view will be consolidating and resilient, all depending on whether one is having a short-term or long-term view or sentiment vs fundamental.

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