Tuesday, July 1, 2014

Market Summary -- 1st Jul 14

FTSE STI closed 3,242.64 ,down 13.03 points or -0.40% with a total volume of 1.84b and a total value of S$766M.  Total number of advance vs decline was 179 vs 215.  Of the 30 component index stocks, 4 closed positive, 5 unchanged and 21 in the red.  The 4 gainer component stocks were :-

1. JSH 500USD  +0.600
2. JMH 400USD  +0.370
3. DBS  +0.060
4. SIA Engg  +0.010

The top 5 loser component stocks were :-

1. Jardine C&C  -0.750
2. OCBC  -0.100
3. KepCorp  -0.080
4. CityDev  -0.080
5. HongkongLand USD  -0.070

US markets closed mixed yesterday but still achieve at least 5% gain for 1H2014.  Asian bourses were mixed with mostly positive for the day.  Nikkei +1.08%, SSE +0.10% and HSI was closed for holiday.  STI however fell 0.40% in thin volume and value with only 4 of the 30 index stocks registered gain.

The start of 2H2014 was filled with economic data starting with China releasing its official PMI for June coming in at 51 as compared to 50.8 in May.  That piece of news lifted most Asian markets to positive but in the afternoon, Euro zone manufacturing PMI for June came in at 51.8 falls to 7-month low.  This week will also see US releasing its ISM, non-ISM and non-farm payroll data for June coupling with ECB meeting in the middle of the week.  Those events will probably see some markets movement before earning season starts in 1.5 to 2 weeks time.

STI continued to pull back and it is now about 1% away from a 3% pull back from recent high.  Index drop in thin volume and value mainly due to the blue chips.  With the World Cup into the knockout stage, most will probably focus on the once in 4 years event rather than stock markets.  The World Cup will end on 14th July and just before the start of earning season for Singapore, just time for earning season play.  Market activity should start to pick up then as investors refocus back to the corporate earning.  From now till then will be opportunity to accumulate on weakness.

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