Thursday, April 3, 2014

Market Summary -- 3rd Apr 14

FTSE STI closed 3,220.06, up 27.28 points or +0.85% with a total volume of 2.21b and a total value of S$1.45b.  Total number of advance vs decline was 261 vs 189.  Of the 30 component index stocks, 24 closed positive, 2 unchanged and 4 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +1.430
2. JSH 500US$  +0.590
3. CityDev  +0.280
4. HKLand US$  +0.220
5. SGX  +0.120

The 4 loser component stocks were :-

1. JMH 400US$  -0.750
2. Kep Corp  -0.030
3. THBEV  -0.005
4. CapMallsAsia  -0.005

US markets closed positive with S&P500 continued to hit new high.  Asian bourses were mostly positive for the day with Nikkei +0.84%, SSE -0.74% and HSI +0.18%.  STI after a pause from yesterday continued to upward surge with a +0.85% closing in moderate volume and value.  24 of the 30 index stocks registered positive closing.

Yesterday US ADP job data came in pretty much in line with expectation indicating firm job market towards this Friday non-farm payroll data.  That news was enough to allow S&P500 hitting another new high,  Asian bourses were mixed but mostly positive after the performance of US markets overnight and news of China stimulus. Chinese Government unveiled its latest stimulus package designed to boost spending on railways and other infrastructure projects.  It was another fiscal policy (similar to the past) and refrained from monetary policy (like interest rate cut or printing money like US Fed and Japan BOJ).  That move in general should be a good one but the lack of monetary policy might cause some to wonder has the Chinese Government running out of idea to boost economic growth.  ECB rate decision will be on the card tonight when investors are focusing on ECB's move towards possible Eurozone deflation.

STI resumed the upwards movement after a pause yesterday but the picture was somehow different.  Most of the stocks that move up were the blue chips and the more fundamental one as perhaps funds are positioning themselves for the coming earning season.  Those favourite punting stocks (the micro-pennies) were all subjected to selling pressure, profit-taking and money rotating out.  That should be a good sign in general for STI without any doubt.  Stress again, focus on the more fundamental stocks, position for it and ditch those punting stocks.

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