Monday, April 28, 2014

Market Summary -- 28th Apr 14

FTSE STI closed 3,242.71, down 24.86 points or -0.76% with a total volume of 1.68b and a total value of S$1.16b.  Total number of advance vs decline was 147 vs 308.  Of the 30 component index stocks, 8 closed positive, 3 unchanged and 19 in the red.  The top 5 gainer component stocks were :-

1. SPH  +0.030
2. HongkongLand USD  +0.020
3. JSH 500USD  +0.020
4. SingTel  +0.020
5. SIA Engg  +0.020

The top 5 loser component stocks were :-

1. Jardine C&C  -1.510
2. JMH 400USD  -0.370
3. UOB  -0.320
4. Sembcorp Ind  -0.170
5. OCBC  -0.170

US markets fell almost 1% on average last Friday and Asian bourses were all in the red.  Nikkei -0.98%, SSE -1.62% and HSI -0.41%.  STI fell 0.76% in a relatively thinner volume and value day.  Only 8 of the 30 index stocks managed to register positive closing.

The concern of Ukraine issue has come back to haunt the markets causing US markets to fell almost 1% on average.  Asian bourses were not spared for the day either.  With G7 nations added further sanctions on Russia due to the Ukraine issue and no sign of anything can resolve peaceful meanwhile, investors begin to weigh on the outcome and impact of that.  Sanctions on Russia (selective groups or individuals) will no doubt have impact on Russia economy with a possibility that it can enter recession in the short-term.  The drag on Russia economy will in turn having impact on Europe economy given the close trade link between them.  Asia might not be affected but the negative sentiment will spread.  For this week, all eyes will be on US Fed FOMC meeting starting tomorrow followed by later of the week on China official PMI data for April and US non-farm payroll for April.  Major consensus will be US Fed will be further taper another US$10b to US$45b/month for the bond purchase.

STI fell x.xx% with the selling piled up in the afternoon after European markets were opened.  There were couple of index stocks gone XD today (more so in the next few days ) and suspect of European funds piled up the selling pressure in the afternoon adding to punters start cutting off their position.  All these becoming a chain reaction to weigh on STI.  Fundamental wise, nothing has changed so far, the usual sentiment spread was what happened to STI for the day.  Instead of herd mentality in following the sell, finding out why European funds were selling today and does that have anything to do with Singapore economy should be the key (at the moment it has absolutely nothing to do with Singapore economy).  For the punters and short-term traders who trade on chart pattern breaking out, this was the day that they have to cut loss of their positions.

No comments:

Post a Comment