Monday, May 5, 2014

Market Summary -- 5th May 2014

FTSE STI closed 3,241.60, down 10.95 points or -0.34% with a total volume of 1.43b and a total value of S$820M.  Total number of advance vs decline was 167 vs 256.  Of the 30 component index stocks, 2 closed positive, 9 unchanged and 19 in the red.  The 2 gainer component stocks were :-

1. ThaBev  +0.015
2. Wilmar  +0.010

The top 5 loser component stocks were :-

1. Jardine C&C  -1.040
2. JSH 500USD  -0.170
3. SIA  -0.150
4. CityDev  -0.120
5. Sembcorp Marine  -0.090

US markets closed negative last Friday after the non-farm payroll data.  Asian bourses were mixed for the day with SSE +0.05%, HSI -1.28% and Nikkei was closed for holiday.  STI down 0.34% closing in thin volume and value day.  Only 2 of the 30 index stocks managed to close positive.

Last Friday US non-farm payroll data showed mixed views despite unemployment rate dropped to 6.3% (a figure last seen in 2008) and 288,000 jobs created in April, better than expectation.  However, the flip side for the positive news was the better data was due to few people seeking for jobs.  Regardless which views, US Fed will continue to taper its stimulus program in the next meeting.  For Asian markets, it was the China HSBC PMI for April that drew investors focus.  The final reading came in 48.1 (better than the previous month of 48.0) but below the initial estimate of 48.3.  The reading still suggesting contraction in China manufacturing sector.  Over the weekend, China official service sector reading came out better than expected.  The mixed bag of data probably drew confusion among investors resulting in mixed market day in thin volume.

STI fell 0.34% in relatively thin volume and value day as investors digested the mixed bag of economic data.  Though profit taking was seen but there was also selectively cautious bargain hunting activities going on.  The drop in STI was mainly due to the blue chips but the mid-cap still providing some resilient so far with some of them supporting well ahead of their earning and some consolidating after their earning.  Quality trading is the key to the month of May, the micro-penny, punter stocks, stay away !!!

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