Monday, January 6, 2014

Market Summary -- 6th Jan 14

FTSE STI closed 3,123.82, down 7.65 points or -0.24% with a total volume of 3.51b and a total value of S$798M.  Total number of advance vs decline was 183 vs 235.  Of the 30 component index stocks, 17 closed positive, 2 unchanged and 11 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.110
2. Kep Corp  +0.080
3. SGX  +0.080
4. SIA  +0.060
5. Semb Corp  +0.050

The top 5 loser component stocks were :-

1. JMH 400US$  -0.790
2. JSH 500US$  -0.210
3. OCBC  -0.150
4. SingTel  -0.060
5. UOB  -0.050

US markets were mixed last Friday but Asia markets were on the selling side for the day.  Nikkei reopened for the first time in 2014 ended -2.35%, SSE -1.80% and HSI -0.58%.  STI opened in the positive looking to recover some of the loss last Friday but with regional markets all in the red, profit taking kicked in causing it to close -0.24%.  Volume was moderate but value was thin with 17 of the 30 index stocks managed to register positive closing.

It was just a week or more ago that everyone were so positive about the markets with US hitting all the new record high and with just a snap of figure, everything suddenly appeared to be bearish now.  Nothing much has changed with some pointing out maybe due to the weakness in the China economic data released past days.  Both its PMI and Service PMI all came in below expectation.  However, the underlying has not changed.  This could only confirm that for those past weeks when markets were rallying, investors were just plain overly optimistic.  This is another economic data filled week before earning season starts.  China CPI, GDP (14th Jan 2014) and US non-farm payroll are just some of the more watchful data coming out.

STI after last Friday of more than 1% sold down looked set to recover some of those losses but soon gave way tracking the weakness in regional bourses.  Volume was moderate due to the punting of the penny stocks while the blue chips still lack of activity as a whole.  With fund managers coming back full force from holiday, they will have lot to do, juggling between economic data, earning season and of course re-balancing their portfolio for 2014.  Whatever the case, remember look at the bigger picture and focus solely on the fundamental.

Inflation is the one to watch this year (refer annual analysis)

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