Friday, December 20, 2013

Market Summary -- 20th Dec 13

FTSE STI  closed 3,094.48, up 24.25 points or +0.79% with a total volume of 3.04b and a total value of S$1.16b.  Total number of advance vs decline was 269 vs 161.  Of the 30 component index stocks, 19 closed positive, 5 unchanged and 6 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.600
2. UOB  +0.330
3. DBS  +0.170
4. SIA  +0.170
5. Kep Corp  +0.120
5. OCBC  +0.120

The top 5 loser component stocks were :-

1. JSH 500US$  -0.500
2. JMH 400US$  -0.230
3. Wilmar  -0.010
4. THBEV  -0.010
5. Semb Corp  -0.010
5. GLP

US markets closed mixed yesterday as investors were digesting the implication of the US Fed tapering.  Asian bourses were also mixed with Nikkei +0.07%, SSE -2.02% and HSI -0.33%.  STI was having a better performance days than regional bourses with a +0.79% closing with heavier volume and value.  19 of the 30 index stocks posted gain.

With no surprise, US Fed did the right move in start taping in January next week reducing the monthly bond purchase from US$85b to US$75b.  For the bigger picture, this is a positive move but for short-term wise, the impact would be volatile to Asia markets.  Funds after the confirmation of the US Fed's move will be no surprised to pull out of Asia and that will cause some volatility in the short-term.  However, there is something for one to ponder about.  US Fed already started the warning of tapering in May and should the funds be smart enough, it will have ample time to exit from May till now and why wait till the last minute ?  Most of the time, funds deciding to pull out now without any doubts is doing a very very poor decision.

STI after yesterday flat performance came to live today as bargain hunting coming in.  However, there is still funds like mentioned earlier doing last minute of pulling out and trying to sell off when prices move up.  As long as there is still those funds making poor decision to sell out now, it will present opportunity for bargain hunt and investors should grab those.

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