Friday, September 6, 2013

Market Summary -- 6th Sep 13

FTSE STI closed 3,048.35, up 8.90 points or +0.29% with a total volume of 2.72b and a total value of S$1.19b.  Total number of advance vs decline was 248 vs 181.  Of the 30 component index stocks, 16 closed positive, 6 unchanged and 8 in the red.  The top 5 gainer component stocks were :-

1. Kep Corp  +0.220
2. Jardine C&C  +0.210
3. SembMar  +0.120
4. SIA  +0.120
5. DBS  +0.090

The top 5 loser component stocks were :-

1. JSH 500US$  -0.240
2. UOB  -0.100
3. HKLand US$  -0.090
4. SIA Engg  -0.030
5. StarHub  -0.020
5. SingTel  -0.020

US markets closed slight positive after yesterday upbeat data on jobless claims and ADP number but most of the gain were given back towards the closing of the markets.  Asian bourses mostly higher with Nikkei -1.45%, SSE +0.83% and HSI +0.10%.  STI managed to stay positive throughout but the gain was limited, daily volume and value were thinner as compared with past days.  16 of the 30 index stocks posted gain.

The upbeat job data ahead of tonight non-farm payroll caused most Asian bourses to move higher.  In additional there was also expectation that China should be able to announce a good set of trade data over the coming weekend.  G20 Summit is currently undergoing as G20 leaders focuses on global growth issue but the Syria issue might take some spotlight.  A good set of non-farm payroll data was expected tonight but by doing so will increase the chance of US Fed to start taper this month.

For STI apart from most of the blue chips traded higher to allow STI to stay in the positive region, majority of the activities were still on penny and laggard stocks.  Most of the oil related stocks were up and similarly those transportation stocks too.  If it is due to rising crude oil price then transportation stocks should not benefit from it.  If transportation stocks up were due to improving global economy but why most of the S-Reits were facing selling pressure given that they will also be benefiting from improving global economy ?  There are more questions than answers now as to why those stocks move up.  There might be looked like buying but could be doing distribution or the same old tactic of pump and dump.  Do take cautious and not chasing for the stocks.  Market going up in thin volume.  While the talk of US Fed tapering has been going on for past months but as long as no confirmation and no detail (should there be a taper event), there will still be uncertainties and markets not have not factor in those.

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