Tuesday, April 8, 2014

Market Summary -- 8th Apr 14

FTSE STI closed 3,204.09, up 10.50 points or +0.33% with a total volume of 1.98b and a total value of S$1.10b.  Total number of advance vs decline was 260 vs 164.  Of the 30 component index stocks, 18 closed positive, 5 unchanged and 7 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +1.450
2. UOB  +0.310
3. SembMar  +0.080
4. SIA  +0.070
5. Noble Grp  +0.060

The top 5 loser component stocks were :-

1. JMH 400US$  -0.380
2. GLP  -0.060
3. JSH 500US$  -0.050
4. ComfortDelGro  -0.050
5. HKLand US$  -0.020

US markets fell another at least 1% yesterday while Asian markets were mixed for the day with most managed to rebound from yesterday sell off.  Nikkei -1.36%, SSE +1.92% and HSI +0.98%.  STI after past 2 days of negative recovered some of the loss with a +0.33% closing in a slightly heavier volume and value than yesterday.  18 of the 30 index stocks posted gain.

It should not be any surprise to sell US markets falling 2 days in a row with at least 1% as basically this is the outcome of investors vesting into the markets for the past months of doing nothing but chasing the wind.  Asia mostly managed to rebound from yesterday sell off with exception of Nikkei.  BOJ held off expanding monetary stimulus today despite the concern of the sales tax hike could hit economy slowdown in the short to mid term.  That was the reason for Nikkei to under-perform rest of Asia.  As for rest of Asia it was bargain hunting coming back cautiously that lifted the market in the positive region for the day.  Tonight, investors should be looking at the US Fed minutes for last month FOMC meeting and Ukraine tension could be resurfaced again in the next few days that could make the market volatile again.  Keep that in mind.

STI managed to recover portion of the losses for the past 2 days but the thin volume and value indicating still cautiousness in buying.  Another factor that contributed to the thinner volume should be the lack of interest in those micro-penny stocks after couple of them have been involved in CAD investigation relating to the trio of Asiasons, Blumont and LionGold.  STI at the moment is awaiting for earning season to start to decide on the direction.  Firm and positive earning could propel STI  further up while a miss expectation type of earning need not mean STI will correct as have to see the underlying reason for the miss (overly expectation by analysts or just a temporary blip).

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