Monday, June 2, 2014

Market Summary -- 2nd Jun 14

FTSE STI closed 3,302.24, up 6.39 points or +0.19% with a total volume of 1.42b and a total value of S$920M.  Total number of advance vs decline was 202 vs 236.  Of the 30 component index stocks, 14 closed positive, 5 unchanged and 11 in the red.  The top 5 gainer component stocks were :-

1. UOB  +0.130
2. JSH 500USD  +0.090
3. Jardine C&C  +0.080
4. CityDev  +0.070
5. SGX  +0.070
5. SPH  +0.070

The top 5 loser component stocks were :-

1. Olam  -0.040
2. Honhkong Land USD  -0.030
3. OCBC  -0.020
4. ST Engg  -0.010
5. StarHub  -0.010
5. SIA Engg  -0.010
5. Sembcorp Marine  -0.010
5. HPH Trust USD  -0.010
5. GLP  -0.010
5. CapitaMall  -0.010

US markets closed mostly positive with S&P500 in record high.  Asian bourses were however pretty much muted except for Nikkei closing +2.07%.  Both SSE and HSI were closed for holiday.  STI was flat, edged out a slight gain of 0.19% with thin volume and value and xx of the 30 index stocks posted gain.

Over the weekend, China released its official PMI data for May coming in at 50.8 better than the 50.4 figure from April.  Japan was up mainly due to the weakening of Yen while rest of Asia mostly flat given no lead from SSE and HSI in reaction to the positive China PMI data.  In the afternoon, Euro zone released its May PMI coming in at 52.5 down from April 53.4.  Investors for this week will have couple of events to look forwards to.  Firstly, 4th Jun in which most anticipating ECB will act to counter the deflation threat.  That might give some positive sentiment to the market in the short term.  Later the week, focus will be on the US non-farm payroll for May.  There after market should be quiet down as majority will be switching to the World Cup starting 12th Jun in Brazil.

STI practically directionless for the day despite the positive China PMI data over the weekend and record closing of S&P500.  Part of the reason could be due to no lead from SSE and HSI from their reaction on the positive PMI data and another should be investors toning down ahead of the World Cup.  With little reasons for positive movement in STI, there are more reasons for a pull back.  Since achieving the target of the breakout from inverted head and shoulder pattern last week, STI has failed to move up higher, struggling to maintain above the 3,300 level and the thin volume showed nothing that any further upwards movement is possible in the short-term either.

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