Friday, March 21, 2014

Market Summary -- 21st Mar 14

FTSE STI closed 3,073.39, up 16.19 points or +0.53% with a total volume of 1.58b and a total value of S$1.17.  Total number of advance vs decline was 254 vs 166.  Of the 30 component index stocks, 22 closed positive, 3 unchanged and 5 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +1.470
2. UOB  +0.450
3. CityDev  +0.270
4. DBS  +0.170
5. Kep Corp  +0.150

The 5 loser component stocks were :-

1. JMH 400US$  -2.180
2. JSH 500US$  -1.500
3. SIA  -0.040
4. HKLand US$  -0.040
5. GoldenAgr  -0.010

US markets closed positive yesterday after firm economic data.  Asian bourses managed to rebound from yesterday selling off with SSE +2.72%, HSI +1.20% and Nikkei was closed for holiday.  STI in line with regional bourses closed +0.53% in thin volume.  22 of the 30 index stocks registered positive closing.

The day before was fear of interest rate could hike sooner than expected and yesterday was optimistic on US economy.  These were the type of events that swing market one way to another causing the short-term volatility; noises.  Interest rate will have to hike one day and the important is whether companies prepare for it and not simply following the notion that interest rate hike means bad for stock markets.  Meanwhile, the Crimea issue has sort of overshadowed by US Fed interest rate fear as US and EU increased their sanctions on Russia.  That saga might one day resurface to cause volatility to market.

STI recovered some of the loss the past 2 days but in a thin volume and value fashion.  Majority are taking the cautious stance and awaiting for more positive sentiment before re-enter.  Look out for analysts coming out to re-stress the concern of S-Reits in particular to interest rate hike, analyze the whole situation before jumping to conclusion what they claim will be correct (more often they are wrong than right !!!).  The usual, stay focus on the fundamental of the company (in term of their cashflow, debt level, profit margin and business operating environment) and this is where one can really find bargain when others are panic over short-term and irrational events.

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