Wednesday, September 17, 2014

Market Summary -- 17th Sep 14

FTSE STI closed 3,296.48, up 23.86 points or +0.73% with a total volume of 1.36b and a total value of S$925M.  Total number of advance vs decline was 274 vs 144.  Of the 30 component index stocks, 26 closed positive and 4 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.240
2. Jardine C&C  +0.230
3. JSH 500USD  +0.200
4. CityDev  +0.190
5. DBS  +0.130

The 4 loser component stocks were :-

1. ComfortDelGro  -0.050
2. SIA Engg  -0.010
3. ThaiBev  -0.005
4. CapitaMall  -0.005

US markets rebounded yesterday and Asian bourses mostly rebounded too.  Nikkei -0.14%, SSE +0.52% and HSI +1.00%.  STI rose 0.73% in thin volume and value with 26 of the 30 index stocks posted gain.

It was news that PBOC (China central bank) decided to inject liquidity into the 5 largest banks that caused global markets for a rebound from past days of selling off.  Still, investors will be watching for the outcome of tonight US Fed FOMC meeting.  Expectation that US Fed will further taper to US$15b/month on its QE should not be any surprising.  What investors keen to know is the statement US Fed going to make regarding when to raise interest rate.  Still uncertain and unclear will probably do no good to global stock markets in the mid-term as investors will be continued to second guess when will it be.  Next on the card will be Thursday Scotland's vote for independence.  Expectation is that a "yes" vote might cause some panic in the stock markets.

STI rebounded from yesterday selling off, reclaimed the 3,280 level.  Should it able to hold on to that support level, STI should not face another breakdown.  Short-covering ahead of US Fed FOMC meeting probably contribute to part of the rebound today as bargain hunting still very cautious at the moment.  S-Reits should be closely watched as most of them are at the support level, any negative news regardless interest rate hike will cause them to breakdown and present a good bargain hunt opportunity.

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