Tuesday, November 19, 2013

Market Summary -- 19th Nov 13

FTSE STI closed 3,192.08, down 10.95 points or -0.34% with a total volume of 1.69b and a total value of S$892M.  Total number of advance vs decline was 176 vs 264.  Of the 30 component index stocks, 13 closed positive, 1 unchanged and 16 closed in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.880
2. JSH 500US$  +0.260
3. Wilmar  +0.090
4. ST Engg  +0.040
5. CityDev  +0.030
5. Kep Corp  +0.030

The top 5 loser component stocks were :-

1. UOB  -0.190
2. HKLand US$  -0.080
3. GLP  -0.070
4. SingTel  -0.060
5. SGX  -0.060

US markets mostly fell yesterday despite DJ and S&P500 crossed 16,000 and 1,800 level on open.  Asian bourses were mostly down for the day with Nikkei -0.25%, SSE -0.19% and HSI -0.01%.  STI also failed to hold on to positive and closed -0.34% in very thin volume and value day.  13 of the index stocks posted gain.

It was no surprised US markets fell despite hitting the all time high level as they were mostly speculated up and not due to fundamental reason.  With US Government still struggled with the debt ceiling, US unemployment rate still high, US economy still living on the life support of US Fed stimulus, there was not a single valid reason for US markets to move higher, perform better than rest of the world.  In short, speculative up will create nothing but bubble that will eventually burst.  As for rest of the world though the fundamental is better than US but with majority of the mindset on US up, rest of the world will move up and US down rest of the world will go down, this is the reason for the negative sentiment.  However, the bright spot is with this type of general mindset, it will present long-term investors with nothing but great value hunting opportunity.  Note not applicable to US markets.

STI closed in the red but the muted trading activity spelled nothing but most still sideline.  Those who still in the market probably make up majority of brokers trying to punt some little profit for living.  That was the reason when the price can't move up they will close off position regardless profit or loss.  For long-term investors, have to filter off the short-term noises and really focus on the fundamental and wait for opportunity.  Opportunity may well just around the corner.

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