Wednesday, September 24, 2014

Market Summary -- 24th Sep 14

FTSE STI closed 3,292.81, down 5.28 points or -0.16% with a total volume of 1.28b and a total value of S$860M.  Total number of advance vs decline was 175 vs 223.  Of the 30 component index stocks, 13 closed positive, 1 unchanged and 16 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.130
2. DBS  +0.070
3. Kep Corp  +0.060
4. StarHub  +0.060
5. SembCorp  +0.050

The top 5 loser component stocks were :-

1. JMH 400USD  -1.150
2. JSH 500USD  -0.310
3. Olam  -0.060
4. CityDev  -0.030
5. SingTel  -0.020
5. HongkongLand USD  -0.020
5. Genting SP  -0.020

US markets fell average 0.5% yesterday and Asian bourses were mixed for the day.  Nikkei -0.24%, SSE +1.50% and HSI +0.35%.  STI fell 0.16% in thin volume and value with 13 of the 30 index stocks posted gain.

US launched air strikes on ISIS and the new tax rules caused US markets to continue the slide.  The air strike on ISIS was not something unexpected as talks have been going on for sometimes.  The concern is will US launch ground troops also.  As for the new tax rules in which US Government closing the loopholes for corporates shifting their HQ to other countries due to M&A to avoid paying higher taxes caused some concerns that M&A activities will decline.  Asian bourses were mixed with part of it being bullish on the slight rebound in China economy while the other half pretty much taking cue from US markets.  The next few days will be interesting to see funds positioning for end of quarter window dressing.

STI fell and going to re-test the support at 3,280.  The possible of funds selling for the end of quarter window dressing might just dip STI to below that level in the coming days and that should not be any panic at all.  What short-term investors or traders should be focusing on is positioning for next month earning season.

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