Thursday, February 6, 2014

Market Summary -- 6th Feb 14

FTSE STI closed 2,988.27, up 28.18 points or +0.95% with a total volume of 2.24b and a total value of S$1.08b.  Total number of advance vs decline was 295 vs 152.  Of the 30 component index stocks, 24 closed positive, 1 unchanged and 5 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.350
2. Jardine C&C  +0.310
3. OCBC  +0.160
4. JSH 500US$  +0.140
5. UOB  +0.140

The 5 loser component stocks were :-

1. Semb Corp  -0.050
2. HKLand US$  -0.040
3. SIA Engg  -0.030
4. Olam  -0.010
5. CapMallsAsia  -0.005

US markets closed slight down yesterday after ADP data came in below expectation.  Asian bourses were mixed for the day with Nikkei -0.18%, SSE still closed for holiday and HSI +0.72%.  STI crawled back some of past days loss with a +0.95% closing in slight heavier volume and value than yesterday.  24 of the 30 index stocks posted gain.

US private sector created less jobs than expected last month and that brought some pressure to this Friday non-farm payroll data.  A weak job data might cause US Fed to temporary halt the tapering which now stand at US$65b per month.  That probably is what investors wanted at the moment.  ECB will have a decision on rate tonight and some are expecting a rate cut as Europe is facing the threat of deflation despite recent data showing Euro zone economy is improving.  China will reopen tomorrow and all eyes will be on how China market perform tomorrow.

STI managed to rebound from past days of selling but with thin volume.  The rebound could be short-covering as the thin volume suggesting most still sideline.  Index stocks rebound but broad market still relatively weak except for selective micro-penny stocks being punted up by punters.  This is a period in which STI will be range bound, trying to build a bottom and consolidate.  What global markets now are looking for not just a single good piece of news or events but couple of those to ease the negative sentiment and stabilize the markets.

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