Thursday, January 23, 2014

Market Summary -- 23rd Jan 14

FTSE STI closed 3,100.24, down 33.50 points or -1.07% with a total volume of 2.70b and a total value of S$1.33b.  Total number of advance vs decline was 130 vs 311.  Of the 30 component index stocks, 5 closed positive, 2 unchanged and 23 in the red.  The 5 gainer component stocks were :-

1. Jardine C&C  +0.160
2. SIA Engg  +0.040
3. CapitaMall  +0.005
4. CapMallsAsia  +0.005
5. THBEV  +0.005

The top 5 loser component stocks were :-

1. JMH 400US$  -1.150
2. JSH 500US$  -0.440
3. DBS  -0.310
4. HKLand US$  -0.180
5. Kep Corp  -0.120

US markets closed mixed yesterday mainly due to mixed corporate earnings.  Asian bourses were all in the red for the day with Nikkei -0.79%, SSE -0.47% and HSI -1.51%.  STI fell 1.07% in slight thin and moderate value day with only 5 of the 30 index stocks managed to register gain.

The main event of the day that caused regional markets to sell down was HSBC flash PMI for China in the month of January coming in at 49.6, the first contraction in 6 months.  The selling down might be over-reaction given that the flash PMI normally comes in below the official data.

STI was initially flat in the earlier session but the selling down accelerate in the afternoon when regional bourses all fall further.  China flash PMI might be showing contraction but that doesn't mean the global economy is so.  China currently undergoing economy reform will have that kind of "move 2 steps ahead and backtrack 1 step" type of momentum.  Singaapore also released its December inflation data this afternoon coming in at +1.5% as compared with +2.6% in November and lower than the expectation of +2%.  As a whole FY 2013 core inflation came in +1.7%.  The selling down due to China weak flash PMI will present bargain hunting opportunity.

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