Thursday, March 6, 2014

Market Summary -- 6th Mar 14

FTSE STI closed 3,129.17, up 12.53 points or +0.40% with a total volume of 2.00b and a total value of S$1.13b.  Total number of advance vs decline was 242 vs 182.  Of the 30 component index stocks, 22 closed positive, 2 unchanged and 6 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.200
2. UOB  +0.170
3. SGX  +0.120
4. CityDev  +0.110
5. DBS  +0.110
6. OCBC  +0.110

The top 5 loser component stocks were :-

1. JMH 400US$  -0.900
2. JSH 500US$  -0.790
3. THBEV  -0.020
4. SPH  -0.010
5. SembMar  -0.010
5. Capitaland  -0.010

US markets closed mixed yesterday after ADP number.  Asian bourses were mixed on open but managed to close positive for the day.  Nikkei +1.59%, SSE +0.32% and HSI +0.55%.  STI rose 0.40% in moderate volume and value day.  22 of the 30 index stocks posted gain.

A weaker than expected ADP number ahead of the non-farm payroll this Friday got investors divided on the strength of the labor market which will lead to whether US Fed will continue to taper in the next FOMC meeting.  Most are expecting a further reduce to US$65b per month.  The Ukraine issue though temporary eased off after Russia pulled back its troop but it is not totally resolved as Russia still refuse to meet the interim Ukraine Government to discuss the situation.  Further more, Ukraine financial situation need to resolve as it will go broke next.  Another event that investors will be watching today is the ECB rate decision.  IMF has urged ECB to cut interest rate further as EU is facing the threat of deflation.  Meanwhile, there wasn't any bad news coming out from the ongoing China NPC in which the Chinese Government has pledged to maintain 7.5% GDP growth for 2014, fight off the air pollution issue and restructure its financial issue like the shadow banking.

STI continue to move up after Monday selling down due to Ukraine issue, recovering from all those losses.  Commodity and bank stocks were the better performer and China water-related stocks were also moved up as many believe they will benefit from Chinese Government determination to clean up the pollution issue.  Rest of the stocks were in range bound or biased towards selling mode but watch out for accumulation as some of them are taking place now.  Many will overlook such accumulation as most were punting for short-term profit.

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