Wednesday, November 27, 2013

Market Summary -- 27th Nov 13

FTSE STI closed 3,172.06, down 1.45 points or -0.05% with a total volume of 1.64b and a total value of S$811M.  Total number of advance vs decline was 184 vs 226.  Of the 30 component index stocks, 11 closed positive and 19 in the red.  The top 5 gainer component stocks were :-

1. SIA  +0.080
2. SingTel  +0.070
3. StarHub  +0.060
4. Kep Corp  +0.040
5. SembMar  +0.030

The top 5 loser component stocks were :-

1. JMH 400US$  -0.620
2. JSH 500U$  -0.170
3. DBS  -0.100
4. CityDev  -0.070
5. SIA Engg  -0.060

US markets closed positive last night with DJ extending its new record and Nasdaq closed at 13-years high.  Asian bourses however were mixed for the day.  Nikkei -0.42%, SSE +0.82% and HSI +0.53%.  STI flat with thin volume and value.  11 of the 30 index stocks managed to register positive closing.

Fund managers adjusting their portfolio for year end summed up the whole activity across global stock markets.  As US indices scaled new high, all the pressurized were on fund managers trying to catch up on the indices if not they will be under performing the benchmark, resulting in speculating the US markets even high.  Rest of the world were mixed as some funds outflow in some region to move back to US or else where while others flow into countries with a growth theme resulting in their respective stock markets can move higher.

STI still facing selling pressure from fund managers resulting in very resistive upwards movement despite some positive sentiment from rest of the world.  While fund managers racing against time to sell off in STI, they are actually creating bargain hunting opportunity for mid to long term investors.  The underlying fundamental of Singapore economy still strong (at least much stronger than US) and that is something that fund managers with short-term view will overlook.  At this stage of time, it is the valuation, the cheapness that matter more than even technical analysis.

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