Friday, November 22, 2013

Market Summary -- 22nd Nov 13

FTSE STI closed 3,172.85, up 0.47 points or +0.01% with a total volume of 1.23b and a total value of S$772M.  Total number of advance vs decline was 185 vs 188.  Of the 30 component index stocks, 16 closed positive, 3 unchanged and 11 in the red.  The top 5 gainer component stocks were :-

1. DBS  +0.100
2. Wilmar  +0.070
3. SIA  +0.060
4. Kep Corp  +0.050
5. OCBC  +0.050

The top 5 loser component stocks were :-

1. JMH 400US$  -0.980
2. JSH 500US$  -0.500
3. HKLand US$  -0.070
4. Semb Corp  -0.050
5. SingTel  -0.020
5. Capitaland  -0.020

US markets closed positive with DJ closing above the 16,000 level.  Asian bourses taking the cue of US markets rebound mostly closed positive for the day.  Nikkei +0.10%, SSE -0.43% and HSI +0.49%.  STI was however a little under performing than regional bourses as struggling between positive and negative in thin volume and value day eventually closed flat.  16 of the 30 index stocks posted gain.

Janet Yellen is a step closer to being nominated as the next US Fed Chairman and with her renounced of in flavor keeping QE longer, that cheered the US markets to close positive with DJ finished above the 16,000 level.  Other than that, there isn't any fundamental reason to support the rally.  Asian bourses were probably on divided views and closed mixed.  The positive view was the prolong of QE which supporting the upside for the market and the negative view was does that still in flavor of Asia as funds could flowing back to US given that the US indices hitting all the high with all the wrong reasons and fund managers are feeling pressure to under performed as compared to the benchmark.

STI was flat for the day as investors were confused.  The prolong of QE can cause funds to flow back to US and the recent China reform did not benefit most to Singapore either.  The lacking of firm beneficial catalysts probably causing funds to divert the money elsewhere (China and Hong Kong to play for the China reform theme, Japan for the Abenomic theme and US for the QE theme).  As such, selling pressure could be seen as fund managers trying the last effort to adjust their portfolio before year end so that they could have a reasonable good performance.  Those are short-term view by fund managers and not representing the state of economy in Singapore.  The more they trying to sell down, the great the opportunity it will be given the fundamental of Singapore economy.

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