Monday, January 13, 2014

Market Summary -- 13th Jan 14

FTSE STI closed 3,135.49, down 8.38 points or -0.27% with a total volume of 3.40b and a total value of S$825M.  Total number of advance vs decline was 169 vs 245.  Of the 30 component index stocks, 8 closed positive, 5 unchanged and 17 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.490
2. Jardine C&C  +0.130
3. ComfortDelGro  +0.030
4. CityDev  +0.010
5. Genting SP  +0.010
5. SIA Engg  +0.010

The top 5 loser component stocks were :-

1. JSH 500US$  -0.230
2. DBS  -0.120
3. Semb Corp  -0.110
4. StarHub  -0.060
5. SembMar  -0.060

US markets closed mixed last Friday after the non-farm payroll data.  Asian bourses were mixed for the day too.  Nikkei closed for holiday, SSE -0.19% and HSI +0.19%.  STI like regional bourses swinging between gain and loss but closed -0.27% in slightly thinner volume and value than past days.  Only 8 of the 30 index stocks posted gain.

US created far far less jobs than expected last month but unemployment rate dropped to 6.7%.  The drop was mainly due to more people leaving the job hunting and not really reflecting the true unemployment rate.  The distorted data caused confusion to investors as to whether US Fed really justify in tapering.  US Fed tapering is a 骑虎难下 (once ride on the tiger, difficult to get down) type of situation now.  There is no turning back of putting back the US$10b reduction in bond buying unless US economy sink into recession.  Whether the subsequent job situation or economy is what they expected, they just have to either wind down some more or maintain status quo.  Fed members, some if not all, are the top economists of the nation and if they also failed to assess the country's economy accurately then it will be a very worrying for US economy.  

STI swinging between positive and negative but closed down as most are sidelined to wait for clearer signal.  The main activity for the day still those micro-penny stocks which punters trying to punt for some profit.  They may be the most active traded counters for the day but be careful of being caught.  Earning season is currently underway and should focus on those fundamental stocks.  There was also observation that some selling down happened to those better fundamental stocks, apart from short-selling, profit taking and lack of funds buying, there are no other reason for the price to fall further.  This is how opportunity arises.

Watch inflation and those high-yield stocks, they might be the most unfavorable now but they will also be the most regrettable months later if you miss buying them cheap now.

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