Friday, March 7, 2014

Market Summary -- 7th Mar 14

FTSE STI closed 3,136.26, up 7.09 points or +0.23% with a total volume of 2.38b and a total value of S$1.06b.  Total number of advance vs decline was 229 vs 204.  Of the 30 component index stocks, 15 closed positive, 5 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. JMH 400US$  +0.890
2. JSH 500US$  +0.560
3. SIA Engg  +0.140
4. HKLand US$  +0.130
5. Kep Corp  +0.060

The top 5 loser component stocks were :-

1. UOB  -0.180
2. Jardine C&C  -0.150
3. DBS  -0.090
4. OCBC  -0.040
5. SGX  -0.030

US markets closed mostly positive last night with S&P500 setting another new high.  Asian bourses were mixed for the day with Nikkei +0.92%, SSE -0.08% and HSI -0.19%.  STI managed to stay positive for the day with moderate volume but value.  15 of the 30 index stocks posted gain.

US jobless claims fell more than expected and many attributed that to the bad weather.  ECB maintained low interest rate at 0.25% despite call from IMF to cut.  ECB raised EU growth forecast and also maintained a rather positive view towards inflation believing it will rise slowly.  However, not so good news emerged from Ukraine as Crimea's parliament voted to join Russia, a move that sent disapproval to Ukraine, US and EU (violation of international law).  As such, US has ordered sanctions on those responsible for Russia's military intervention.  Investors will closely monitor the Ukraine situation over the weekend.  Asian bourses were as investors awaiting for tonight US non-farm payroll apart from those economic events.  A continuation drop in unemployment rate will cause the US Fed to continue the tapering to US$65b per month but the decision to raise interest rate will not happen when the 6.5% target meets.

STI though swinging between positive and negative but managed to stay positive on close as investors taking profit ahead of the weekend.  Moderate volume was due to the micro-penny play as short-term punters churn for profit.  Though for past weeks there was data indicating funds outflow from Asia markets but those should not the wiser/smarter of the global funds.  The wiser/smarter one will take the opportunity to accumulate on Asia equity, the average funds (most of them now) will be those pouring money into US and Europe markets now.  The not so wise/smart one will be those selling out on Asia equities (missed the boat long long ago).

No comments:

Post a Comment