Monday, February 17, 2014

Market Summary -- 17th Feb 14

FTSE STI closed 3,069.28, up 30.57 points or +1.01% with a total volume of 2.57b and a total value of S$1.09b.  Total number of advance vs decline was 302 vs 134.  Of the 30 component index stocks, 26 closed positive and 4 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +2.750
2. JMH 400US$  +0.690
3. UOB  +0.510
4. CityDev  +0.240
5. SIA  +0.170

The 4 loser component stocks were :-

1. Semb Corp  -0.070
2. HPH Trust US$  -0.030
3. StarHub  -0.020
4. CapitaMall  -0.005

US markets closed positive last Friday and Asian bourses were positive for the day.  Nikkei +0.56%, SSE +0.92% and HSI +1.07%.  STI in line with regional bourses rose 1.01% in moderate volume and value.  26 of the 30 index stocks posted gain on close.

Not much event from US last Friday except US lawmakers finally raise the debt ceiling preventing a default by end of this month.  On the surface that is some good news but underlying afraid is not.  If the debt ceiling can be easily raised which mean encourage more debt then what's the purpose of having a ceiling in the first place.  That is definitely not a good move in the long run.  Asia today saw Japan released its 4Q GDP coming in at +0.3% lower than expectation, causing Nikkei to dip but managed to close positive later.  Rest of Asian continued to rebound with the lack of events.

Singapore released its January non-oil export data this morning which fell 3.3%, a surprise drop but that didn't affect STI as most were tracking regional bourses performance.  After last Friday slight dip due to profit taking, STI continued to move up higher though the volume and value lack conviction of a strong rally further.  Majority of the companies have released their earning and hence market will be tracking global events more.  Keep option opens that STI could move up further with the lack of volume as short-selling closing of position could force STI to move higher and as it moves higher, those waiting to bargain hunt will be panic of missing out and thereby pushing it even higher.

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