Wednesday, October 30, 2013

Market Summary -- 30th Oct 13

FTSE STI closed 3,230.44, up 21.62 points or +0.67% with a total volume of 3.04b and a total value of S$1.19b.  Total number of advance vs decline was 181 vs 280.  Of the 30 component index stocks, 22 closed positive, 5 unchanged and 3 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.310
2. JMH 400US$  +0.300
3. UOB  +0.260
4. DBS  +0.140
5. OCBC  +0.070
5. SingTel  +0.070

The 3 loser component stocks were :-

1. HKLand US$  -0.080
2. SIA Engg  -0.060
3. HPH Trust US$  -0.010

US markets rose with S&P500 creating a new record high yesterday.  Asian bourses taking the cue were positive for the day.  Nikkei +1.23%, SSE +1.48% and HSI +2.00%.  STI inline with regional bourses rose 0.67% in a slightly more volume and value than yesterday.  22 of the 30 index stocks registered positive closing.

It was the prelude to the outcome of the US Fed FOMC meeting that caused global markets to move higher.  Most expecting US Fed should not taper until 1Q2014.  Japan reported a rise in factory output this morning in economic news.  Other than that it was pretty much sentiment driven for most of the markets.

STI rose for the day but for board market was different kind of story.  Penny stocks mostly subjected to selling pressure for the day given that news revealed that more brokering houses are imposing trading restriction on those penny stocks and with the designated trio collapse still fresh in investors mind, it will take time to repair the confidence before investors coming back for the penny stocks.  Without the punting of penny stocks, STI daily volume and value was weaken than past months.  While the sentiment for not expecting US Fed to start taper until 1Q2014 is one thing, investors should not ignore the basic fundamental valuation of the stocks.

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