Monday, February 3, 2014

Market Summary -- 3rd Feb 14

FTSE STI closed 2,990.95, down 36.27 points or -1.20% with a total volume of 1.52b and a total value of S$948M.  Total number of advance vs decline was 138 vs 274.  Of the 30 component index stocks, 2 closed positive, 2 unchanged and 26 in the red.  The 2 gainer component stocks were :-

1. DBS  +0.070
2. ComfortDelGro  +0.005

The top 5 loser component stocks were :-

1. JMH 400US$  -1.230
2. JSH 500US$  -1.180
3. Jardine C&C  -0.630
4. UOB  -0.220
5. HKLand US$  -0.160

US markets closed average -0.6% last Friday and Asia bourses were all in the red with Nikkei -1.98% and both SSE and HSI were closed for CNY.  STI fell 1.20% in thin volume and value day.  Only xx of the 30 index stocks managed to register positive closing.

The concern of emerging markets continued to weigh on investors despite last week strong data from US 4Q GDP.  Over the CNY holiday, China released its official PMI and Service PMI (today) all indicating slowing down from past days.  Whether those were affected because of the CNY periods, it is debatable.  Another debatable issue was the global selling down is it due to just plain over-valuation or a fresh problem due to emerging markets.  While the Year of Snake started with its head and ending on its tail, the Year of the Wooden Horse definitely started on its tail.  Should it be able to end on its head next year, the current sell down will be great opportunity.  The key now is know how to determine and differentiate between rationale and irrationale in the market.

STI re-opened from CNY fell 1.20% in thin volume and value as investors are foregoing any CNY rally due to the global negative sentiment.  STI has broken down the 3,000 level which automatically drew all those analysts out trying to predict where the support will be now and trying to outsmart each other on who will be guessing it most accurately.  Never ever just a stock valuation based on index value, that is narrow-sighted view.

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