Monday, May 26, 2014

Market Summary -- 26th May 14

FTSE STI closed 3,282.88, up 4.86 points or +0.15% with a total volume of 1.67b and a total value of S$891M.  Total number of advance vs decline was 244 vs 177.  Of the 30 component index stocks, 9 closed positive, 12 unchanged and 9 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.590
2. JSH 500USD  +0.150
3. UOB  +0.150
4. Sembcorp Marine  +0.030
5. SGX  +0.030
5. SingTel  +0.030

The top 5 loser component stocks were :-

1. Jardine C&C  -0.280
2. ComfortDelGro  -0.070
3. HongkongLand USD  -0.040
4. Capitaland  -0.030
5. SIA  -0.010
5. Olam  -0.010
5. OCBC  -0.010
5. Keppel Corp  -0.010
5. DBS  -0.010

US markets closed positive last Friday with average 0.5% gain.  Asian bourses taking the cue were mostly positive for the day with Nikkei +0.97%, SSE +0.34% and HSI -0.01%.  STI though was up 0.15% but with thin volume and value.  9 of the 30 index stocks posted gain.

The exit poll of Ukraine Presidential Election over the weekend brought some optimism to US and Europe of Ukraine crisis and that brought some positive sentiment to the global market for the day.  For this week, investors will be focus on Japan in which it will release its unemployment and retail sales data later this week.  These data will be the first after the sales tax hike, expectation will be it will take a hit but to what extend ? For Europe, it will focus on what and when ECB will act next month to curb deflation.  For US, markets might be hitting fresh high but do not let the bullishness get it away.  Be cautious of a correction coming soon.  This week will be last week for May,   A "final rally" could materialize before correction kick in.

STI though up but with thin volume, the index still trading in tight range.  Another rally is possible within this or next week before pull back or correction kicks in.  For short-term traders, risk is the main factor now.  The more one chase the price based on charts breakout, the more expose to the risk will get.  One or two more chance to get out, miss it, will have to stomach it for next 1.5 to 2 months.

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