Tuesday, September 3, 2013

Market Summary -- 3rd Sep 13

FTSE STI closed 3,054.78, down 0.94 points or -0.03% with a total volume of 4.18b and a total value of S$1.31b.  Total number of advance vs decline was 258 vs 178.  Of the 30 component index stocks, 11 closed positive, 2 unchanged and 17 in the red.  The top 5 gainer component stocks were :-

1. HKLand US$  +0.150
2. GLP  +0.060
3. SGX  +0.060
4. SPH  +0.060
5. CapMallsAsia  +0.055

The top 5 loser component stocks were :-

1. JSH 500US$  -0.470
2. Jardine C&C  -0.470
3. UOB  -0.100
4. SIA  -0.080
5. CityDev -0.080

US markets were closed for holiday yesterday while Europe markets ended positive due to better than expected PMI data.  Asian bourses continued to move higher today with Nikkei +2.99%, SSE +1.18% and HSI +0.99%.  STI however under-performed regional bourses closing flattish.  Volume was again on the high side while value was on the thin side.  11 of the 30 index stocks posted gain.

The bullish global PMI data temporary offset current negative events like the Syria issue, US Fed tapering etc.  US President at the moment is waiting for his Congress to vote on whether to carry out strike on Syria.  Should a strike being carried out, global markets can be expected to feel the knee-jerk reaction but longer-term fundamental will remain intact. 

STI was directionless for the day with short-term investors taking profit on the blue chips and mostly focus on punting penny stocks for quick profit.  There were also sense of rotational play in which broker houses just issued buy call and the stocks moved up for the day.  Question should be asked why they didn't raise buy call few weeks ago when prices were at the lowest after all nothing has changed much from weeks ago till now.  Those were pretty high risk to chase.  It is an eventful month but should focus on the long term fundamental and do the appropriate action of accumulating fundamental stocks on weakness.

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