Thursday, July 31, 2014

Market Summary -- 31st Jul 14

FTSE STI closed 3,374.06, up 20.41 points or +0.61% with a total volume of 1.72b and a total value of S$1.66b.  Total number of advance vs decline was 193 vs 256.  Of the 30 component index stocks,  15 closed positive, 5 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.390
2. Jardine C&C  +0.180
3. CityDev  +0.140
4. DBS  +0.140
5. Capitaland  +0.130

The top 5 loser component stocks were :-

1. SIA  -0.270
2. Kep Corp  -0.060
3. SIA Engg  -0.040
4. Olam  -0.030
5. Wilmar  -0.010
5. ThaiBev  -0.010
5. SPH  -0.010
5. SGX  -0.010
5. CapitaMall  -0.010

US markets closed mixed yesterday and Asian bourses were mixed with mostly positive.  Nikkei -0.16%, SSE +0.93% and HSI +0.10%.  STI rose 0.61% in slightly higher volume and value with 15 of the 30 index stocks posted gain.

US 2Q GDP came in +4% higher than expected, ADP job data came in 218,000 below expectation and US Fed as expected tapered another US$10b to US$25b/month on its stimulus program.  Still maintaining the same forecast of interest rate which the earliest to hike is in 2015.  While the economic data might surprise investors but US Fed outcome from FOMC meeting remained largely as expected.  As such, US markets were mixed.  News for the day was Argentina is technically in default and that piece of news caused Asian bourses to perform mixed.  Those that managed to rally were mainly due to funds doing month end window dressing.  How US markets going to react to Argentina default will keep investors closely monitor.  US future was sold down at the moment.  Tomorrow US non-farm payroll and China official PMI data will be those closely watched too.

STI was up 0.61% in slightly higher volume and value mainly due to funds doing month end window dressing.  Broader markets were mostly flat biased towards downside as investors taking cautious of the Argentina default issue.  The default will no doubt hit US hedge funds but how that will impact the global economy still unknown.  The window dressing for STI has done nothing but presented shorting opportunity.  For short-term investors, any up is window to sell and accumulate for short positions.


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