Monday, June 9, 2014

Market Summary -- 9th Jun 14

FTSE STI closed 3,305.20, up 5.77 points or +0.17% with a total volume of 2.33b and a total value of S$935M.  Total number of advance vs decline was 250 vs 187.   Of the 30 component index stocks, 17 closed positive, 3 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.480
2. Hongkong Land USD  +0.110
3. CityDev  +0.060
4. Jardine C&C  +0.060
5. Olam  +0.050

The top 5 loser component stocks were :-

1. JSH 500USD  -0.140
2. UOB  -0.060
3. Keppel Corp  -0.050
4. ComfortDelGro  -0.040
5. SembMar  -0.030

US non-farm payroll came out better than expected last Friday with unemployment rate remained at 6.3%, causing US markets to close positive with S&P500 in another record high.  Asian bourses taking the cue were mostly positive for the day but most pared gain on close.  Nikkei +0.31%, SSE +0.03% and HSI +0.73%.  STI opened positive but failed to maintain the momentum and closing flat in moderate volume and very thin value.  17 of the 30 index stocks posted gain. 

The US non-farm payroll data for May was encourage with the number of jobs created exceed expectation and US finally managed to recover all those jobs lost since the 2008 sub-prime crisis.  However, the underlying was not so bright.  From 2008 till now, the population has grown so as the population of people looking for jobs.  As they managed to recover those jobs lost, they still need to work hard and create more jobs for those additional population growth.  Over the weekend, China released its trade data for May with export rose 7% vs 0.9% in April but import fell 1.6% compared with +0.8% in April.  China trade surplus also widened sharply to $35.9b in May compared with S$18.5b in April.  That was somehow a little positive in that data.  Japan has something to cheer about this morning too as its revised 1Q GDP came in +6.7% better than the initial estimate of +5.9%.  All those positive news led to positive sentiment in Asian bourses but trading wise, was pretty much quiet with thin volume.  As such, those could be just be knee-jerk reaction and whether it can be sustained is another question.

STI was one of those who was unable to sustain the gain from open closing flat.  Volume was moderate mostly due to punters punting for penny stocks and value was very thin.  Knee-jerk reaction with little participation.  For those who chasing stock prices upon seeing the gap up, the risk is very high.  World Cup about to start in 3 days time, market is biased towards the downside.

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