Wednesday, February 5, 2014

Market Summary -- 5th Feb 14

FTSE STI closed 2,960.09, down 5.71 points or -0.19% with a total volume of 1.87b and a total value of S$1.15b.  Total number of advance vs decline was 176 vs 235.  Of the 30 component index stocks, 10 closed positive, 5 unchanged and 15 in the red.  The top 5 gainer component stocks were :-

1. CityDev  +0.190
2. Kep Corp  +0.100
3. Semb Corp  +0.090
4. CapMallsAsia  +0.030
5. Wilmar  +0.030

The top 5 loser component stocks were :-

1. DBS  -0.130
2. SIA Engg  -0.050
3. HKLand US$  -0.050
4. UOB  -0.030
5. ST Engg  -0.030
5. SembMar  -0.030
5. Jardine C&C  -0.030

US markets rebounded with at least +0.40% but Asian bourses were mixed.  Nikkei +1.23%, SSE still closed for holiday and HSI -0.60%.  STI turned from positive to close slight down of -0.19% in thin volume and value day.  10 of the 30 index stocks registered positive closing.

It was a dead cat bounce for US markets as nothing was done to ease investors' concerns on emerging markets, US Fed tapering and the pull back in economic data.  Asian bourses took the opportunity to sell hence resisting any upsides.  There are more reasons for US markets to go down further than rebound.

STI initially opened positive but with seller (short-term traders and punters) taking the opportunity to cut-loss and sell and with the lack of buyers, it turned negative in the end.  STI would like slowly drift lower until all the sellers are being absorbed and bottomed out there.  Do not try to pick the exact bottom as most of the time it just happens without anyone knowing it.  Instead just focus on the valuation and stomach any volatility.  

No comments:

Post a Comment