Thursday, September 18, 2014

Market Summary -- 18th Sep 14

FTSE STI closed 3,297.29, up 0.81 points or +0.02% with a total volume of 1.95b and a total value of S$960M.  Total number of advance vs decline was 170 vs 238.  Of the 30 component index stocks, 10 closed positive, 4 unchanged and 16 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.230
2. Jardine C&C  +0.180
3. OCBC  +0.070
4. Noble  +0.055
5. HongkongLand USD  +0.040

The top 5 loser component stocks were :-

1. JSH 500 USD  -0.100
2. CityDev  -0.080
3. UOB  -0.060
4. SIA  -0.050
5. SembMar  -0.050
5. SembCorp  -0.050

US markets closed positive yesterday with DJ hitting record high.  Asian bourses were mixed for the day mostly positive with Nikkei +1.13%, SSE +0.35% and HSI -0.85%.  STI was flat in slightly higher volume but thin value with 10 of the 30 index stocks posted gain.

It was no surprise from US Fed and another of those no-show day as US Fed taper another US$10b to US$15b of its QE and expecting to completely ending the QE next month.  As for the interest rate issue, it again gave the "considerable time" statement that still keeping investors second guess on when it will start to raise interest rate.  While the move might calm the markets a bit now but come 3 to 6 months down the road, same problem will resurface again when investors getting nervous and jitter about when interest rate will eventually be raise.  For Asian, though most of the markets taking cue that US Fed will not raise interest rate soon, China reported drop in home prices weighed down causing HSI to sink into the red.  Another event to watch tonight will be the outcome of Scottish vote to independence.  Though most of the media reported that should Scotland get the "yes" to go independence will be bad for global economy (in particular England), is that really true ? If that is true then why in the first place the idea of going independence surface ?  From the bigger picture and longer time frame, Scotland being independence might be a good one.  Do not rule out that option.

STI was flat as investors were divided.  On the boarder market, nothing has changed.  S-Reits still hanging around the support level as some funds could be still continue to offload.  Should those do not get breakdown by end of this month, it should rebound next month when earning season starts again.

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