Wednesday, March 5, 2014

Market Summary -- 5th Mar 14

FTSE STI closed 3,116.64, up 11.93 points or +0.38% with a total volume of 2.12b and a total value of S$1.16b.  Total number of advance vs decline was 221 vs 214.  Of the 30 component index stocks, 16 closed positive, 3 unchanged and 11 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +2.000
2. JSH 500US$  +1.060
3. Jardine C&C  +1.000
4. SIA  +0.090
5. Olam  +0.075

The top 5 loser component stocks were :-

1. UOB  -0.250
2. DBS  -0.120
3. SGX  -0.060
4. SembMar  -0.050
5. Semb Corp  -0.040

US markets closed average at least +1.5% yesterday with S&P500 setting a new record high.  Asian bourses were mixed with mostly positive.  Nikkei +1.20%, SSE -0.89% and HSI -0.34%.  STI rose +0.38% in moderate volume and value with 16 of the 30 index stocks registered positive closing.

The easing of Ukraine tension when Russia pulled back its troop to base helped US markets to rebound yesterday.  Asian bourses tracking that were mostly positive on open but closed mixed.  Another event that took center-stage for the day was China National People's Congress which started today.  Chinese Government set a 7.5% economic growth for 2014 and that sort of lifted the ongoing concern of Chinese economy slowing down.  However, that news did little to help SSE as it traded in the negative throughout.  HSI was dragged down by that sentiment reversing earlier gain to close in the red.  Though the Ukraine tension took a break but the whole issue is not over yet as such investors still a bit on the cautious side.  US economic data like non-farm payroll releasing end of the week is something investors will be watching closely too.

STI though managed to stay positive but was subjected to profit taking for most part of the day.  The ongoing global events ranging from economic data from US, Ukraine issue to China National People's Congress outcome still provide a mixed catalysts which resulting in STI pretty much range bound.  What investors really need now is know how to identify and differentiate between short and long term events, ignoring the short-term volatility and focus on the bigger picture.

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