Tuesday, July 9, 2013

Market Summary -- 9th Jul 13

FTSE STI closed 3,178.63, up 23.16 points or +0.73% with a total volume of 1.87b and a total value of S$999M.  Total number of advance vs decline was 275 vs 119.  Of the 30 component index stocks, 25 closed positive, 3 unchanged and 2 in the red.  The top 5 gainer component stocks were :-

1. JSH 500US$  +0.300
2. CityDev  +0.190
3. DBS  +0.150
4. JMH 400US$  +0.100
5. SGX  +0.090

The 2 loser component stocks were :-

1. Noble Grp  -0.025
2. HPH Trust US$  -0.005

US markets closed positive yesterday continuation from last Friday.  Asian bourses mostly rebounded from yesterday sold down with Nikkei +2.58%, SSE +0.37% and HSI +0.49%.  STI tracking regional bourses closed +0.73% in another of those thin volume and value day.  25 of the 30 index stocks registered positive closing.

With an improving set of economic data, US Fed tapering is on track and that probably get investors finally come to term with it and focus on fundamental instead.  Aloca was the first to release its earning yesterday starting US earning season with its profit beating estimate after market closed.  That coupling with positive US closing gave some positive sentiment to Asian bourses.  Markets were up but still there cautiousness there.  Investors should also be monitoring the US Fed minutes for last month FOMC meeting this Wednesday.  Should there be negative reaction to that due to fear of tapering, that will be another great bargain hunt opportunity.

STI crawling back those losses in another thin volume and value day as majority of the investors still sideline waiting for firmer catalysts in the form of corporate earning which starts 15th July.  S-Reits, the one that were sold down yesterday rebounded but upside were capped before their earnings were out next week.  While waiting for the earning season to start, going through past quarters of earning checking of resilient would be a better option now in order to bargain hunt.  The US Fed taper is a true fact if and only if US economy is able to self recover and reaction to the withdrawal of stimulus only bring over-reaction to stock markets in which opens up bargain hunt opportunity.

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