Thursday, January 16, 2014

Market Summary -- 16th Jan 14

FTSE STI closed 3,140.44, down 2.81 points or -0.09% with a total volume and 2.50b and a total value of S$947M.  Total number of advance vs decline was 170 vs 257.  Of the 30 component index stocks, 6 closed positive, 5 unchanged and 21 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.570
2. Kep Corp  +0.090
3. DBS  +0.050
4. CapMallsAsia  +0.015
5. GLP  +0.010

The top 5 loser component stocks were :-

1. UOB  -0.110
2. SGX  -0.080
3. JMH 400US$  -0.060
4. SIA  -0.030
5. SembMar  -0.030
5. Semb Corp  -0.030

US markets closed positive of at least +0.5% with S&P500 hitting new high.  Asian bourses were mixed though.  Nikkei -0.39%, SSE +0.02% and HSI +0.37%.  STI closed flat at -0.09% with thinner volume and value.  Only 6 of the 30 index stocks registered positive closing.

Upbeat US corporate earning sending S&P500 hitting new high but Asian bourses were unable to repeat the strength of US markets and closed mixed.  The recent positive economic data and corporate earning have most believe the strength of the recovery of US economy and hence shifting their money from Asia back to US.  That was the reason Asia markets feeling the weakness despite the very positive from US markets.   It is again the story of developed vs emerging markets at the moment.  Short-term wise they might be correct that developed economy is the one to go but from macro picture and longer time frame, this is never so.

STI failed to close positive after yesterday positive closing.  Profit taking was one of the reason.  Lack of funds buying is another as they shifting to US markets.  While the selling and weakness was observed but the underlying is not so.  For those in the micro-penny stocks, it is the last chance to get out before the music totally stop.  Look at each individual transaction in term of trade quantity, trade price and trade time, it is more than just plain profit taking and funds shifting out.  A spring after prolong period of compressing will eventually rebound with a greater force while the spring after prolong period of overstretching will eventually recoil back sharply.

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