Monday, October 7, 2013

Market Summary -- 7th Oct 13

FTSE STI closed 3,136.59, down 1.49 points or -0.05% with a total volume of 4.07b and a total value of S$1.03b.  Total number of advance vs decline was 106 vs 401.  Of the 30 component index stocks, 11 closed positive, 5 unchanged and 14 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.230
2. Kep Corp  +0.070
3. Semb Corp  +0.070
4. DBS  +0.050
5. OCBC  +0.050

The top 5 loser component stocks were :-

1.  Jardine C&C  -0.520
2. JSH 500US$  -0.360
3. SIA  -0.100
4. CityDev  -0.070
5. Wilmar  -0.050

US markets closed positive with at least 0.50% last Friday despite the still no resolution on the partial US Government shutdown and debt ceiling.  Asian bourses were mostly lower for the day with Nikkei -1.22%, SSE still close for holiday and HSI -0.71%.  STI fared better than regional bourses with a flat closing in a very thin volume and value day.  Only 11 of the 30 index stocks managed to register positive closing.

Still no show for the shutdown and debt ceiling and news that US House refused to vote on a clean bill without string attached to lift the US Government partial shutdown weigh on Asian bourses for the day.  US even delayed released of last month non-farm payroll data due to the shutdown.  As the clock ticks towards the 17th Oct deadline for the debt ceiling, investors are monitoring closely every single news and events coming out from US.

STI was on a flat trading day and with SGX suspended 3 penny stocks last Friday due to their recent irrational price movements, even after being termed as designated stocks after lifting the suspension today, the stock prices for the 3 still slide for the day as investors rushing for the exit door.  That sentiment spread to other penny stocks with most of them falling and punters are staying sideline for the time being.  That resulted in thin volume for the day.  Perhaps it is also time SGX need to re-look at how licensed Trading Representatives and brokerage firms trade on stock markets as part of the irrational price movement was also due to remisiers/brokers trading on their own account for quick punt to get profit.  While most attention are focus on US issues and the penny stocks, it is the best time to focus on the those companies with resilient earning which will be releasing their earning soon and any irrational and panic sell down will be bargain opportunity.

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