Thursday, July 17, 2014

Market Summary -- 17th Jul 14

FTSE STI closed 3,306.89, up 2.46 points or +0.07% with a total volume of 2.33b and a total value of S$953M.  Total number of advance vs decline was 207 vs 209. Of the 30 component index stocks, 16 closed positive, 4 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.480
2. JSH 500USD  +0.240
3. DBS  +0.130
4. CityDev  +0.070
5. ComfortDelGro  +0.040

The top 5 loser component stocks were :-

1. UOB  -0.470
2. SIA Engg  -0.030
3. ST Engg  -0.020
4. Olam  -0.020
5. SIA  -0.010
5. OCBC  -0.010
5. KepCorp  -0.010

US markets closed positive yesterday with DJ hitting record high.  Asian bourses were however closed the day in the red.  Nikkei -0.06%, SSE -0.57% and HSI -0.01%.  STI was flat for the day with moderate volume but thin value.  16 of the 30 index stocks posted gain.

Positive corporate earning helped US markets to record positive closing with DJ hitting new record high.  Asian bourses starting the day positive but failed to hold gain with most ended in the red for the day.  With news of both EU and US slapping more sanctions on Russia due to the Ukraine issue, that caused some nervous to the global stock markets with investors taking profit for the time being.  With US Fed Chairman concluded her 2 days testimony in front of congress, the conclusion from that was US economy though in recovery but still weak in general sense and the loose monetary policy will remain.  On the other hand, US Fed also concerned on bubble forming in leveraged loans.  Another issue that might influence global market is the China shadow banking and that could in focus in 1 or 2 weeks time. 

Singapore released its non-oil export data for June coming in at -4.6%.  That piece of news coupled with regional bourses weak performance caused STI to give up earlier gain and closing flat, trying to stay above the 3,300 level.  The thin value coupling with majority of the activity was on penny stocks, put question on whether STI has the strength to move up further or maintain above the 3,300 level.  As corporate earning still yet to be in full swing, there was cautious trading in the blue chips as they are awaiting for the release of the earnings.  Short-term wise, STI might be biased towards the upside should corporate earnings are mostly positive but have to be cautious from October onwards as global markets correction could kick in.

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