Wednesday, January 29, 2014

Market Summary -- 29th Jan 14

FTSE STI closed 3,047.93, down 14.48 points or -0.47% with a total volume of 1.93b and a total value of S$1.05b.  Total number of advance vs decline was 168 vs 236.  Of the 30 component index stocks, 7 closed positive, 5 unchanged and 18 in the red.  The top 5 gainer component stocks were :-

1. Wilmar  +0.050
2. StarHub  +0.030
3. ComfortDelGro  +0.020
4. Genting SP  +0.010
5. GoldenAgr  +0.005
5. Olam  +0.005
5. THBEV  +0.005

The top 5 loser component stocks were :-

1. JSH 500US$  -0.480

2. Jardine C&C  -0.350
3. JMH 400US$  -0.180
4. DBS  -0.130
5. CityDev  -0.130

US markets closed positive yesterday rebound from past days of negative.  Asian bourse mostly taking the cue and traded positive for the day.  Nikkei +2.70%, SSE +0.56% and HSI +0.82%.  STI however failed to track regional bourses and instead closed -0.47%.  Volume and value were thin for the day with 7 of the 30 index stocks posted gain.

India did a rate hike yesterday followed by Turkey to stamp the currency volatility due to US Fed tapering and that was seen as a positive step to stabilize the emerging market.  That events helped global markets to rebound and ease fear of the liquidity issue in emerging markets.  Investors will also be watching for tonight US Fed FOMC meeting outcome as to whether US Fed will start another round of tapering.  Consensus were divided with one camp citing the current emerging markets issue should have little impact on US economy in which US Fed will not take into consideration and continue next round of tapering.  The opposite camp's view is that US Fed should monitor the whole situation first before taking the next step.  Which is which should not be matter.  The true hard fact is US Fed tapering has to move on and emerging markets issue is more on speculative on the negative rather than the real fundamental issue.

STI was on the losing side for the day after yesterday rebound.  This could be attributed to CNY is just days ahead and short-term traders and punters were closing positions for the holiday.  STI down mainly due to the selective heavy weight index stocks that dragged it down, while the broader market however was neutral and in range bound. 

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