Friday, July 11, 2014

Market Summary -- 11th Jul 14

FTSE STI closed 3,293.73, up 24.23 points or +0.74% with a total volume of 1.24b and a total value of S$875M.  Total number of advance vs decline was 203 vs 214.  Of the 30 component index stocks, 17 closed positive, 7 unchanged and 6 in the red.  The top 5 gainer component stocks were :-

1. UOB  +0.830
2. DBS  +0.200
3. HongkongLand USD  +0.110
4. KepCorp  +0.080
5. SIA  +0.060

The top 5 loser component stocks were :-

1. Jardine C&C  -0.700
2. JSH 500USD  -0.330
3. JMH 400USD  -0.080
4. CityDev  -0.030
5. ST Engg  -0.010
5. StarHub  -0.010

US markets fell as much as 1% but recovered to close average -0.45%.  Asian bourses were mixed for the day with Nikkei -0.34%, SSE +0.42% and HSI -0.02%.  STI was the better performer for the day with a +0.74% closing but on thin volume and value.  17 of the 30 index stocks posted gain.

Portugal debt spooked the global markets sell down as investors get a little panic and rushed for the exit door.  While the exact impact on global economy yet to be known and probably awaiting for Portugal Government and ECB assessment on the impact but investors would rather prefer safe than sorry.  The attention might be quickly switching to China shadow banking, a potential time bomb.  Short-term wise, the event will be a very good excuse for some global markets overdue correction in particular US but the long-term implication would have to see the final assessment.

STI managed to outperform regional bourses with a +0.74% rise despite thin volume and value.  This was mainly due to UOB which rose 3.58% (contributing at least 1/3 of the STI gain) and it drew SGX query on its rise in stock price.  Minus off the impact due to UOB, STI would be like regional bourses to be flat.  While the issue of Portugal debt might have caused short-term selling among global markets, STI would be one of those the sell down will present opportunity for bargain hunting provided the Portugal debt is not a very serious case.

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