Thursday, June 19, 2014

Market Summary -- 19th Jun 14

FTSE STI closed 3,269.02, down 7.78 points or -0.24% with a total volume of 2.07b and a total value of S$1.12b.  Total number of advance vs decline was 221 vs 203.  Of the 30 component index stocks, 8 closed positive, 6 unchanged and 16 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.780
2. SIA  +0.060
3. CityDev  +0.040
4. Noble  +0.025
5. Capitaland  +0.020
5. DBS  +0.020
5. SIA Engg  +0.020

The top 5 loser component stocks were :-

1. JSH 500USD  -0.330
2. Jardine C&C  -0.100
3. HongkongLand USD  -0.070
4. UOB  -0.050
5. SingTel  -0.040
5. ComfortDelGro  -0.040

US markets closed at least +0.5% with S&P500 ended at record high.  Asian bourses were however mixed for the day with Nikkei +1.62%, SSE -1.55% and HSI -0.06%.  STI opened positive but failed to hold on to the gain and close slightly in the red with higher volume and value than yesterday.  Only 8 of the 30 index stocks posted gain.

US Fed concluded the 2 days FOMC meeting with another US$10b cut in its QE3 to US$35b/month.  It guidance on interest rate hike will be no rate hike until 2015 but higher its interest rate forecast for 2015 and 2016.  That piece of news was nothing unexpected and investors were happy to hear that resulting in US markets rallied to new high.  The onus for US markets to move high was purely sentimental rather than any fundamental related.  For Asian, it was an opportunity to take profit when markets moved up as most markets failed to hold on to the gain.  Another concern was the Iraq violence.  US markets is severely overdue for correction.

STI failed to hold gain and closed in the red with again penny stocks dominated the market activity.  Lack of bargain hunting for the blue chips and punters were solely focusing on rotational penny stocks punting to get profit, it was no surprising STI turned south eventually.  Patience to wait for opportunity to bargain hunt the big and mid caps and will be rewards in mid-term.  STI is only half-way through correction, amble of opportunity to accumulate.

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