Friday, November 8, 2013

Market Summary -- 8th Nov 13

FTSE STI closed 3,177.25, down 24.85 points or -0.78% with a total volume of 1.66b and a total value of S$938M.  Total number of advance vs decline was 173 vs 235.  Of the 30 component index stocks, 1 closed positive, 2 unchanged and 27 in the red.  The only gainer component stock was :-

1. SIA Engg  +0.030

The top 5 loser component stocks were :-

1. Jardine C&C  -1.120
2. JMH 400US$  -0.850
3. JSH 500US$  -0.560
4. ST Engg  -0.150
5. SIA  -0.140

US markets fell at least 1% yesterday night despite positive news from economic data.  Asian bourses taking the cue all fell for the day.  Nikkei -1.00%, SSE -1.09% and HSI -0.60%.  STI tracking regional bourses closed -0.78% in thin volume and value day.  Only 1 of the 30 index stocks managed to register positive closing.

ECB cut interest rate to record low of 0.25% to fight dropping inflation and US 3Q GDP came in better than expected at +2.8%.  Unfortunately, those good news have become negative news to investors as stronger economic data would mean US Fed has every reason to start tapering.  Another set of today due tonight is the US non-farm payroll for October and if that also another positive news then investors will start to worrying when US Fed will taper; probably much earlier than they have expected.  Another piece of positive news out today was China export rebounded in October coming in +5.6% above expectation of +3.2% but import came in +7.6% slight below expectation of +8.5%.  Again investors are presently treating "positive" economic news as "negative".  All this mainly because they put their focus on the wrong thing ie US Fed stimulus program.

STI after past days of muted trading ended the week with a drop of 0.78%.  Investors taking profit ahead of the weekend and also wary that any good set of non-farm payroll data tonight would cause US Fed to start tapering sooner than expected.  Stress again, US Fed tapering is simply taking away something that was not suppose to be there initially and it should not be treated as negative event.

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