Monday, December 9, 2013

Market Summary -- 9th Dec 13

FTSE STI closed 3,113.64, down 0.53 points or -0.02% with a total volume of 2.35b and a total value of S$1.01b.  Total number of advance vs decline was 210 vs 186.  Of the 30 component index stocks, 13 closed positive, 1 unchanged and 16 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.190
2. Kep Corp  +0.130
3. HKLand US$  +0.120
4. Jardine C&C  +0.080
5. SIA Engg  +0.070
5. UOB  +0.070

The top 5 loser component stocks were :-

1. JSH 500US$  -0.190
2. DBS  -0.060
3. Semb Corp  -0.050
4. ComfortDelGro  -0.035
5. ST Engg  -0.030

US markets rose at least 1% last Friday after better than expected non-farm payroll data.  Asian bourses taking the cue were mostly positive for the day.  Nikkei +2.29%, SSE +0.05% and HSI +0.29%.  STI however maintained its weak performance with a flattish close, unable to sustain the gain in the earlier part of the day in thin volume and value day.  xx of the 30 index stocks posted gain.

US created more jobs than expected last month with unemployment rate dropped to 7%; the positive side was a cheer to the recovery of the labor market and the negative side is the as usual fear of US Fed tapering soon.  China also reported a better than expected trade data over the weekend further suggesting its economy is stabilizing.  In addition, it also released its inflation showing that the annualized rate slowed to 3% in November vs 3.2% in October.  Japan meanwhile released its 3Q GDP leading to a lower revised to annualized 1.1% gain vs previously +1.9%.  The strong US non-farm payroll gave investors a divided view and hence divided stock market performance.  Those under selling pressure faced with money outflow while those with a growth theme (in particular North Asia and developed nations) will attract money inflow.

STI part of South East Asia was grouped with the emerging market side, resulting in nett money outflow hence causing STI unable to perform.  The as usual S-Reits were under selling pressure but do not ignore the opportunity to bargain on that as the valuation getting attractive, for the longer period of times, the investment will not be a bad one.  Those with the negative call on S-Reits are the one with the short-term view.  US markets might be enjoying all the rally beware of bubbles forming due to over optimistic on the US economy recovery.

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