Wednesday, February 12, 2014

Market Summary -- 12th Feb 14

FTSE STI closed 3,035.45, up 6.35 points or +0.21% with a total volume of 2.30b and a total value of S$992M.  Total number of advance vs decline was 219 vs 202.  Of the 30 component index stocks, 16 closed positive, 5 unchanged and 9 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.990
2. JSH 500US$  +0.970
3. SIA  +0.200
4. Kep Corp  +0.040
5. SGX  +0.040
5. SIA Engg  +0.040

The top 5 loser component stocks were :-

1. Jardine C&C  -0.570
2. Wilmar  -0.040
3. SPH  -0.020
4. OCBC  -0.020
5. THBEV  -0.015

US markets rose another at least 1% yesterday after US Fed Chairman Janet Yellen's report.  Asian bourses taking the cue all traded in positive region for the day.  Nikkei +0.56%, SSE +0.30% and HSI +1.47%.  STI in line with regional bourses rose another 0.21% in a slightly heavy volume and value than yesterday.  16 of the 30 index stocks posted gain.

Nothing unusual from Janet Yellen's report to lawmakers with respect to tapering, economic view and concern from emerging markets on US economy.  That was enough to ease some worries off investors thereby making US markets continue to rebound.  Asia taking the cue from US markets and also a better than expected trade data from China (export rose 10.6% and import 10% in January both surprising expectation) set Asian bourses to continue rebound.  However, there was debate whether the surprise trade data for China was due to distortion from the CNY.

STI continue the rebound with blue chips leading the way up.  Total volume and value still far from the moderate level indicating some still sideline from the rebound.  Should STI continue to move up in the next few sessions despite the lack in volume and value, this might create panic from short-sellers to cover position and bargain hunting coming in in fear of missing out the recent dip.  All this will eventually lead to further upside to the market.

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