Wednesday, June 18, 2014

Market Summary -- 18th Jun 14

FTSE STI closed 3,276.80, up 2.36 points or +0.07% with a total volume of 1.91b and a total value of S$873M.  Total number of advance vs decline was 242 vs 155.  Of the 30 component index stocks, 15 closed positive, 5 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. JSH 500USD  +0.760
2. Hongkong Land USD  +0.090
3. Jardine C&C  +0.070
4. SembCorp  +0.030
5. StarHub  +0.030

The top 5 loser component stocks were :-

1. JMH 400USD  -0.900
2. SIA  -0.070
3. UOB  -0.060
4. CityDev  -0.030
5. SGX  -0.020

US markets closed average +0.2% yesterday and Asian bourses were mixed for the day.  Nikkei +0.93%, SSE -0.54% and HSI -0.09%.  STI again swinging between gain and loss closing flat in thin volume and value.  15 of the 30 index stocks posted gain.

US reported higher inflation for May and that brought some concern that US Fed might hike interest rate faster than expected due to the inflation.  Tonight investors should expect US Fed to further taper another US$10b/month of the QE3 and looking out for guidance of when rate hike.  For Asia, the only data that came out today was Japan trade data with both export and import fell short of expectation.  Export for May fell 2.7% with expectation of decline 1.2%.  Import for May fell 3.6% with expectation of rising 1.7%.  Nevertheless, Nikkei still closing positive probably investors are weighing that Japanese Government might roll out some stimulus.  For rest of Asia it was cautious ahead of tonight US Fed FOMC meeting outcome and continued concern on the Iraq violence.

STI continued to stay flat for the day with main activity on the penny stocks where punters punt for quick profit.  While the penny stocks get some rotation in interest, the blue chips hardly move given the lack of buying.  A short-term rebound is on the way but will be resistive with selling pressure.  There might have some funds trying to sell this month to lock in some profit for their 1H portfolio, the focus should be on next month earning season and this is when big and mid-cap stocks should be closely watched for bargain opportunity.

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