Tuesday, June 3, 2014

Market Summary -- 3rd Jun 14

FTSE STI closed 3,296.67, down 5.57 points or -0.17% with a total volume of 1.51b and a total value of S$1.27b.  Total number of advance vs decline was 195 vs 239.  Of the 30 component index stocks, 8 closed positive, 3 unchanged and 19 in the red.  The top 5 gainer component stocks were :-

1. ComfortDelGro  +0.070
2. DBS  +0.060
3. Keppel Corp  +0.030
4. Noble  +0.025
5. SPH  +0.020

The top 5 loser component stocks were :-

1. JSH 500USD  -0.240
2. JMH 400USD  -0.140
3. UOB  -0.080
4. CityDev  -0.080
5. Sembcorp Ind  -0.070

US markets closed mostly higher after a see-saw day.  Asian bourses were mixed with Nikkei +0.66%, SSE -0.04% and HSI +0.91%.  STI dipped 0.17% in thin volume and value and only 8 of the 30 index stocks posted gain.

An error in the US ISM data caused the US markets to see-saw with the first initial report claimed that for May US ISM came in at 53.2, far below expectation resulting in US markets to fall but hours later a correction was made and the adjusted data came in at 55.4, pretty much in line with expectation leading to US markets to reverse the loss.  Asian bourses mostly positive but closed mixed after China final flash PMI data came in at 49.4, an improvement from previous month but still in contraction mode.  Nikkei was helped with further weakening of the Yen, SSE and HSI were playing catchup in reaction to over the weekend positive PMI data but rest of the reigonal bourses were taking cautious stance.

STI fell as investors taking in profit and stay cautious ahead of couple of events this week, ECB rate decision this Thursday and US non-farm payroll data on Friday.  With STI continued to struggle to maintain above the 3,300 level, any positive knee-jerk reaction to the above 2 events could see most taking the opportunity to take profit, cut loss and closing position.  Market starting to get jittering, to ride the storm, make sure the correct stocks are selected.  For the savvy, on one hand wait to accumulate, on the other hand, take the opportunity to short.

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