Wednesday, July 2, 2014

Market Summary -- 2nd Jul 14

FTSE STI closed 3,263.91, up 21.27 points or +0.66% with a total volume of 1.93b and a total value of S$963M.  Total number of advance vs decline was 272 vs 154.  Of the 30 component index stocks, 25 closed positive, 3 unchanged and 2 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.960
2. JSH 500USD  +0.470
3. JMH 400USD  +0.320
4. UOB  +0.150
5. SIS  +0.120

The 2 component stocks were :-

1. Olam  -0.030
2. CapitaMall  -0.010

US markets made record closing yesterday with at least 0.7% gain and Asian bourses taking the lead were all positive for the day.  Nikkei +0.29%, SSE +0.44% and HSI +1.55% (playing catch up for yesterday closure).  STI rebounded from past days of drop with a 0.66% gain but with thin volume and value.  25 of the 30 index stocks posted gain.

Firm US ISM data for June coupling with that from China and Europe (still in expansion despite drop) providing the positive sentiment for US markets to scale new high.  The sentiment spread to Asia with all traded in positive region for the day.  More economic data like US non-ISM, non-farm payroll, etc and ECB meeting will be on investors' radar for this week.  With the lack of negative events any positive outcome from those will probably see global markets moving up further due largely to sentiment rather than the underlying fundamental.

For STI, the gap up of blue chips probably due to short-covering lifted the index to recover all of yesterday loss but came with thin volume and value.  Putting sentiment aside, any further upwards movement will have to base on how the coming corporate earning season being played out.  Sustainable and better than expected corporates' earning could see attracting bargain hunters and funds coming back for Singapore stocks while any disappointment in the corporates' earning could see STI continue to have not finished pull back. 

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