Tuesday, December 17, 2013

Market Summary -- 17th Dec 13

FTSE STI closed 3,067.57, up 13.80 points or +0.45% with a total volume of 2.53b and a total value of S$791M.  Total number of advance vs decline was 222 vs 157.  Of the 30 component index stocks, 20 closed positive, 3 unchanged and 7 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.350
2. JMH 400US$  +0.340
3. JSH 500US$  +0.250
4. Kep Corp  +0.190
5. CityDev  +0.080

The top 5 loser component stocks were :-

1. SIA  -0.110
2. HKLand US$  -0.110
3. DBS  -0.050
4. StarHub  -0.030
5. SembMar  -0.010

US markets closed average +0.70% last night due to some upbeat economic data, domestically and globally.  Asian bourses taking the cue started off the day in positive but closed mixed.  Nikkei +0.83%, SSE -0.45% and HSI -0.20%.  STI managed to rebound from yesterday drop and closed +0.45% in higher volume but thin value day.  20 of the 30 index stocks posted gain.

On one hand investors cheered on upbeat economic data and on the other hand keeping an eye on US Fed FOMC meeting starting today.  As such resulting in Asian bourses closing mixed.  Focus should not be on whether US Fed will start or when will it start to taper but rather on the very basic fundamental of economy and valuation.  For those who focused on the US Fed tapering are nothing but shorted-sighted and narrow view.

STI rebounded from yesterday sell off despite some unexpected non-oil export data for November.  It reported a surprise fall 8.8% on-year in November after rising 2.8% in October.  Very much that data has not much effect on STI but there is something happening in the stocks in particular the interest-rate sensitive S-Reits.  Earlier part of the session, there was selling down probably as a cautious or anticipation of a possible US Fed tapering but the bargain hunting slowly coming in and managed to support the price.  One thing for sure is should US Fed announces tapering this week and causes those S-Reits price to drop, that is once in a lifetime bargain hunting opportunity.  Many still persist negative view on S-Reits at the moment but keep in mind that those with the negative views now are actually those with the bullish view earlier this year with all the buy calls when prices rocketed up and yield was deeply compressed.  They got it all wrong then and what make it that they will get it right this time ?

Slip slide away, slip slide away if you hold then negative view now, slip slide away, slip slide away on the bargain hunt.

No comments:

Post a Comment