Thursday, September 12, 2013

Market Summary -- 12th Sep 13

FTSE STI closed 3,121.08, up 12.89 points or +0.41% with a total volume of 9.40b and a total value of S$1.74b.  Total number of advance vs decline was 309 vs 175.  Of the 30 component index stocks, 21 closed positive and 9 in the red.  The top 5 gainer component stocks were :-

1. UOB  +0.150
2. OCBC  +0.110
3. NobleGrp  +0.095
4. Kep Corp  +0.090
5. Wilmar  +0.080

The top 5 loser component stocks were :-

1. Jardine C&C  -0.470
2. JMH 400US$  -0.460
3. JSH 500US$  -0.400
4. ST Engg  -0.070
5. SPH  -0.030

US markets closed mostly higher yesterday after US President delayed the Congress vote on Syria attack instead opting for diplomatic solution.  Asian bourses were mostly positive for the day with Nikkei -0.26%, SSE +0.64% and HSI +0.07%.  STI almost crawled back what was loss yesterday with a +0.41% closing in a super heavy volume day but thin value day.  21 of the 30 index stocks registered positive closing.

With the avoidance of Syria strike at the moment, investors slowly returned back to risk bargain hunting on equity.  However, the US Fed FOMC meeting next week still a much awaited one for most.  From now till mid October in which corporate earning season starts again, investors will be solely on global events like US Fed tapering, Germany election and US debt ceiling issue.  Short-term wise sentiment might be positively biased but any unexpected from those events will see dip in the market again.

STI saw very heavy volume day, doubling that as compared with past days but value was thin as trading activity was dominated with the penny stocks which churned high volume.  Short-term punters, playing catch up were reasons for the penny stocks run.  Singapore MAS announced new lending and credit curb yesterday but that didn't affect bank stocks as most of them were up for the day.  The new rules should be able to help the banks strengthen their balance sheet with lesser defaults to write off.  Sentiment might be biased towards positive but should not be overly optimistic to chase stock prices to over valuation value.  Short-term investors should have the mid October corporate earning in mind to focus on bargain hunting.  The selling down past months has caused those great fundamental and resilient earning stocks to be cheap now.

No comments:

Post a Comment