Monday, March 3, 2014

Market Summary -- 3rd Mar 14

FTSE STI closed 3,087.47, down 23.31 points or -0.75% with a total volume of 2.32b and a total value of S$1.20b.  Total number of advance vs decline was 114 vs 394.  Of the 30 component index stocks, 7 closed positive, 1 unchanged and 22 in the red.  The top 5 gainer component stocks were :-

1. CapitaMall  +0.040
2. GoldenAgr  +0.030
3. HKLand US$  +0.020
4. SIA Engg  +0.020
5. HPH Trust US$  +0.010
5. THBEV  +0.010
5. Wilmar  +0.010

The top 5 loser component stocks were :-

1. Jardine C&C  -0.950
2. JSH 500US$  -0.500
3. JMH 400US$  -0.390
4. UOB  -0.180
5. SIA  -0.130
5. DBS  -0.130

US markets closed mixed last Friday after GDP data coming in at 2.3%, slightly lower than estimated.  Asian bourses were mostly in the red for the day with Nikkei -1.27%, SSE +0.92% and HSI -1.47%.  STI also sank into the red with a drop of 0.75% in moderate volume and value.  Only 7 of the 30 index stocks managed to post gain.

Over the weekend China released its official February PMI coming in at 50.2, an 8-month low but the main event that dominated the trading for the day was the tension in Ukraine.  China stock market was the exceptional with a gain as investors focus on the coming National People's Congress which starts on this Wednesday.  Investors will be looking out for economic growth guidance by the Chinese Government.  The main issue now is Ukraine, while it is too early to confirm any damaging effect on global economy as Ukraine alone is pretty much small and isolated.  However, if the issue escalates to between Russia and the rest of the world then global economy will be affected.  Investors just have to see how those being resolved between Russia and the rest of the world.  Some point in time, NATO or UN will intervene if situation get worst.   In fact, G8 members cancel the G8 meeting this week in Sochi due to this Ukraine issue (in which Russian Government sanctions military forces to Ukraine).

STI like regional bourses was hit by the Ukraine issue as traders and short-term investors sell to either take profit or cut loss.  Part of it no doubt was due to fear and panic.  However, without fear and panic, there won't be bargain opportunity.

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