Thursday, April 10, 2014

Market Summary -- 10th Apr 14

FTSE STI closed 3,203.58, down 6.34 points or -0.20% with a total volume of 2.02b and a total value of S$1.35b.  Total number of advance vs decline was 220 vs 233.  Of the 30 component index stocks, 15 closed positive, 6 unchanged and 9 in the red.  The top 5 gainer component stocks were :-

1. CityDev  +0.200
2. Kep Corp  +0.120
3. DBS  +0.110
4. HKLand US$  +0.070
5. UOB  +0.070

The top 5 loser component stocks were :-

1. Jardine C&C  -2.830
2. JMH 400US$  -2.200
3. JSH 500US$  -1.330
4. SGX  -0.040
5. OCBC  -0.030
5. Capitaland  -0.030

US markets closed at least +1.0% yesterday and Asian bourses were mostly positive for the day.  Nikkei practically unchanged, SSE +1.38% and HSI +1.50%.  STI unfortunately fell 0.20% in moderate volume and value with 15 of the 30 index stocks posted gain.

US Fed minutes last month showed that there wasn't a consensus among the Fed voting members that interest rate hike will be a soon event and that triggered US stock markets to jump at least 1% with reason being interest rate hike fear eased.  The volatility of the stock markets with reference to interest rate definitely prompt the question of are all the US companies really prepare for interest rate hike or the stock market is not prepared for it.  That is something to ponder about.  If it is the latter case, there could be only one conclusion, the recent record high in US stock markets is nothing but pure overly optimistic and valuation is way way over-stretched.  Downside for US stock markets much much more than upside despite all those hype about US economy recovering well.  For Asia, couple of events happened today.  Japan machinery orders fall 8.8% in February, China import and export fell 11.3% and 6.6% respectively for March and both set of data all fall short of expectation.  Furthermore, China premier Li Keqiang also ruled out any short-term major stimulus plan and claimed that China is willing to except 2014 GDP growth even slightly below the target of 7.5%.    That however, did not cause SSE and HSI to tank.  Interesting !!!

STI was in negative region throughout mainly due to the drag by Jardine group of shares.  This was due to early poll for Indonesia's election suggested that the expected party did not fare well as expected (PDI-P failed to get the 20% mark before the poll are all accounted for as what majority expected).  Minus off Jardine C&C, STI jolly well should be in positive region hence again concluding STI is never a true reflection of Singapore stock market.  What did the Jardine group of companies have anything to do with Singapore economy when they don't have any operation here ?  For broader market, punters' stocks (micro-penny) continued to see the selling off as interest rotating out to those more fundamental one ahead of earning release.

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