Monday, January 27, 2014

Market Summary -- 27th Jan 14

FTSE STI closed 3,042.43, down 33.56 points or -1.09% with a total volume of 2.48b and a total value of S$1.42b.  Total number of advance vs decline was 81 vs 412.  Of the 30 component index stocks, 2 closed positive, 3 unchanged and 25 in the red.  The 2 gainer component stocks were :-

1. SGX  +0.050
2. CapitaMall  +0.010

The top 5 loser component stocks were :-

1. JMH 400US$  -1.890
2. Jardine C&C  -1.590
3. JSH 500US$  -0.490
4. SIA  -0.180
5. Kep Corp  -0.160

US markets fell average 2% last Friday after emerging markets sell off.  Asian bourses taking the cue were all the in red with Nikkei -2.51%, SSE -1.03% and HSI -2.11%.  STI fell another 1.09% with thinner volume and moderate value.  Only 2 of the 30 index stocks managed to close positive.

The sell off from emerging market and credit fear from China triggered another day of global sell off.  While some of the sell off are rationale, some are not.  US, Japan, Europe, China, Thailand and Indonesia have all the valid reason to justify the sell off but not rest of the Asia.  Hence, for the irrational part of the selling off, look at another view, it is nothing but bargain hunt opportunity.  There will be US Fed FOMC meeting from 28th - 29th Jan and investors are looking at whether US Fed will confirm another round of tapering.  There is one true fact that everyone must know.  Despite all those rosy and sexy talk of developed nations economy recovering (in particular US), their economy will go nowhere without Asia.  To invest in (US) or Asia, the wiser one will know what to choose and this is how to distinguish between loser and winner in stock market.

STI tracking regional bourses sink into the red with another 1% drop though volume was thin.  With the global sell off and CNY near the corner, short-term traders and punters were rather closing their positions (taking profit or cutting loss) and for those at the sideline still staying sideline.  Despite the non-positive sentiment, Singapore corporate earning so far still within expectation.  For being one of the irrational market that was sold down, there is only one thing; bargain hunting opportunity.

No comments:

Post a Comment