Tuesday, March 4, 2014

Market Summary -- 4th Mar 14

FTSE STI closed 3,104.71, up 17.24 points or +0.56% with a total volume of 3.22b and a total value of S$1.08b.  Total number of advance vs decline was 303 vs 158.  Of the 30 component index stocks, 19 closed positive, 4 unchanged and 7 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.710
2. JSH 500US$  +0.490
3. UOB  +0.330
4. JMH 400US$  +0.290
5. Olam  +0.080

The top 5 loser component stocks were :-

1. DBS  -0.060
2. Semb Corp  -0.040
3. CapitaMall  -0.030
4. Capitaland  -0.030
5. SGX  -0.020
5. CityDev  -0.020

US markets fell at least 1% yesterday despite some positive economic data in consumer spending and ISM number, weighing down by the Ukraine tension.  Asian bourses started the day mixed but managed to rebound from yesterday sell off.  Nikkei +0.47%, SSE -0.18% and HSI +0.70%.  STI rebounded 0.xx% in heavier volume but thin volume.  xx of the 30 index stocks posted gain.

The Ukraine issue weighed on investors.  Will Ukraine default ? Will Russia start a war ? These are the possibilities that weighed on investors at the moment.  While the possibility of that happening is not zero but what important is the action taken should that happen.  A timely action such as IMF come in to assist if Ukraine default and NATO intervention if war starts would be able to control the damage.  There is a difference between Russia starting a war and can it do it successfully.  Also note that should foreign investments all pulling out of Russia, it will cripple its economy and even if it has the intention to start a war it can't also.  As a whole, the Ukraine issue is all just a short-term jitter.  In the late afternoon news of Russia pulling back its troops to base excited investors and caused the rebound to strengthen.

STI like regional bourses managed to stage a rebound from yesterday selling off.  Surprisingly, the volume for the day was heavier than past days.  This could be due to short-covering and funds taking the opportunity to bargain hunt.  Punters would also be opening positions in anticipation of today US markets rebound.  As mentioned before this is the period in which one should monitor funds (the wiser and the smarter one) bargain hunting and not solely focus on short-term volatility.

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