Friday, May 30, 2014

Market Summary -- 30th May 14

FTSE STI closed 3,295.85, down 4.86 points or -0.15% with a total volume of 1.84b and a total value of S$1.66b.  Total number of advance vs decline was 206 vs 230.  Of the 30 component index stocks, 12 closed positive, 3 unchanged and 15 in the red.  The top 5 gainer component stocks were :-

1. JSH 500USD  +0.360
2. Olam  +0.140
3. OCBC  +0.080
4. Hongkong Land USD  +0.070
5. ST Engg  +0.040

The top 5 loser component stocks were :-

1. Jardine C&C  -2.030
2. SPH  -0.150
3. CityDev  -0.140
4. Keppel Corp  -0.090
5. DBS  -0.080

US markets hit another record high yesterday closing average +0.40%.  Asian bourses were however mixed for the day with Nikkei -0.34%, SSE -0.07% and HSI +0.31%.  STI fell on the open but managed to pare loss and close flat with thinner volume and value than yesterday.  12 of the 30 index stocks posted gain.

US 1Q GDP came in at -1% worse than expected but many attributed that to the bad winter weather.  Whether it was solely due to the bad winter weather it is still much debatable.  Subsequent month will know.  Moreover 2Q GDP should see the effect of US Fed tapering and how have it affect the economy.  For Asia, it was quite a heavy data day for Japan.  Japan's April CPI came in +3.2%, more than expected due to the post sales-tax hike and that finally moved Japan out of deflation (Japan inflation target was 2%).  Unemployment rate maintained at 3.6% but Industrial Production fell 2.5%.  The moving out of deflation could prompt BOJ to start tapering on its stimulus and how the sales-tax hike impact on its economy will be known in 2Q GDP.  It should take a hit but just how bad it will be.  China and Hong Kong markets were awaiting for China PMI releasing over the weekend.  That could be something for next week Asia markets. 

STI after yesterday window dressing rally, was pretty much flat.  With weekend next and any potential upside will be limited, most took profit.  Though, STI managed to pare loss for the day, those were mainly due to window dressing reason.  What expecting for next month will be tone down of market activities with biased towards the downside.  Technically, STI could pull back to back test the inverted head and shoulder breakout level and that pretty much in line with a 3% pull back.

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