Thursday, December 26, 2013

Market Summary -- 26th Dec 13

FTSE STI closed 3,134.36, up 7.07 points or +0.23% with a total volume of 3.81b and a total value of S$618M.  Total number of advance vs decline was 320 vs 135.  Of the 30 component index stocks, 19 closed positive, 3 unchanged and 8 in the red.  The top 5 gainer component stocks were :-

1. JSH 500US$  +0.170
2. UOB  +0.090
3. DBS  +0.070
4. Jardine C&C  +0.070
5. SGX  +0.050

The top 5 loser component stocks were :-

1. JMH 400US$  -0.090
2. SIA  -0.030
3. HKLand US$  -0.030
4. Kep Corp  -0.020
5. StarHub  -0.010
5. Olam  -0.010
5. CityDev -0.010

US markets made another record high closing on Christmas eve and Asian bourses that opened today mostly traded positive.  Nikkei +1.03% at 6-year high, breaking above the 16,000 level, SSE -1.58% and HSI was closed for Boxing day.  STI's positive momentum continued with another +0.23% closing in a slightly heavier volume but thin value.  19 of the 30 index stocks managed to register positive closing.

Most of the global markets were upbeat resulting in the upwards movement except for China in which the fear of credit crunch capped any positive sentiment.  The global positive sentiment could spread to next year when fund managers all returning from holiday and playing catch up.

STI notched another 0.23% up in slightly heavier volume but very thin value as fund managers mostly on holiday and only retail and traders playing the penny stocks that caused the heavier volume.  This will be an interesting scenario as fund managers who sold off last month and earlier this month for closing of their account book before heading for their holiday will be coming back next year seeing they have actually sold off at low and have to buy back higher in order to play catch up.  That momentum could further push STI further up next month.  As mentioned in the 2nd week of this month bottom will slip slide away quietly and it has happened.  For those who believe in analysts' view of WAIT, take it as a lesson NEVER EVER listen to analysts again.  For those who ignored analysts' view and focus on the valuation and bought during the 2nd week bargain hunting period, hold on to those and don't let off cheaply to the fund managers next month.

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