Monday, September 16, 2013

Market Summary -- 16th Sep 13

FTSE STI closed 3,179.48, up 59.18 points or +1.90% with a total volume of 3.60b and a total value of S$1.72b.  Total number of advance vs decline was 329 vs 178.  Of the 30 component index stocks all closed positive.  The top 5 gainer component stocks were :-

1. Jardine C&C  +2.050
2. JMH 400US$  +1.900
3. JSH 500US$  +1.780
4. UOB  +0.320
5. CityDev  +0.310

US markets closed positive last Friday average +0.3%.  Asian bourses mostly positive and rallied for the day.  Nikkei was closed, SSE -0.22% and HSI +1.47%.  STI also rallied with a +1.90% but volume was thin. 

There wasn't much news over the weekend except for US and Russia both came to consensus of the deadline for which Syria must surrender all its chemical weapons.  Late into the weekend, an unexpected news broke out that is Lawrence Summers quit the race for next US Fed Chairman and that gave a strong reason for global markets to rally.  This is mainly because Lawrence Summers was termed as "unfriendly" to monetary easing.  Apart from that, investors will be looking to the US Fed FOMC meeting starting tomorrow and last till Wednesday to determine the possible of tapering and detail of it.

STI like regional bourses took the Lawrence Summers news as very positive and rallied to close +1.xx% but volume was thin compared to past days as lacking of penny stocks punting.  Majority are sideline and see what will be the outcome of the US Fed FOMC meeting.  Trying to bet on the outcome is never wise, one should consider all the possible scenario (including market rallies even if confirm tapering and detail being release) and what action to take for it.  Looking at the fundamental will be highest priority to determine which to buy and bargain hunt, the US Fed taper or not and the detail of it will be just a short-term noise to it.

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