Friday, February 7, 2014

Market Summary -- 7th Feb 14

FTSE STI closed 3,013.14, up 24.87 points or +0.83% with a total volume of 2.21b and a total value of S$1.20b.  Total number of advance vs decline was 234 vs 188.  Of the 30 component index stocks, 23 closed positive, 3 unchanged and 4 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.980
2. JMH 400US$  +0.600
3. UOB  +0.270
4. JSH 500US$  +0.260
5. CityDev  +0.210

The 4 loser component stocks were :-

1. SIA  -0.060
2. SIA Engg  -0.040
3. HPH Trust US$  -0.010
4. CapitaMall  -0.005

US markets gained at least 1% yesterday after better than expected weekly jobless claims data.  Asian bourses taking the cue all closed positive for the day.  Nikkei +2.17%, SSE reopened for holiday recovered from loss to close +0.56% and HSI +1.00%.  STI in line with regional bourses continued with yesterday rebound closing +0.83% in volume and value similar to that of yesterday.  23 of the 30 index stocks posted gain.

A better than expect US weekly jobless claims and surprise that ECB did not cut rate triggered a global market rebound for the day.  ECB did not cut rate yesterday suggesting the deflation issue might be able to contain and that was the signal send out.  That has somehow eased some concern on the Euro zone deflation issue.  Investors will be looking at tonight US non-farm payroll data.  The number might be a tricky one.  A better than expected data indicating labor market continues to improve and US Fed should cut another US$10b in its QE3 in the next FOMC meeting while a weak data might cause US Fed to temporary halt the tapering.  A temporary halt to its tapering might ease some concern on the impact on the current emerging markets volatility.

STI finally rebound back above 3,000 level though the volume was a little thin which suggests the rebound might not have strength in the near-term.  As usual blue chips were mostly up but the broader market still lack the strength.  Another up will quickly met with selling resistance, this was observed especially in the afternoon when European markets about to open.  From the action of them market, it was clear that most were using the rebound to sell off rather than buying.  Global markets in need of couple of positive news or events to get out of the current negative sentiment.

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