Wednesday, September 3, 2014

Market Summary -- 3rd Sep 14

FTSE STI closed 3,348.77, up 20.47 points or +0.62% with a total volume of 1.55b and a total value of S$1.11b.  Total number of advance vs decline was 234 vs 201.  Of the 30 component index stocks, 22 closed positive, 4 unchanged and 4 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +1.860
2. Jardine C&C  +0.650
3. JSH 500USD  +0.380
4. DBS  +0.130
5. HongkongLand USD  +0.110

The 4 loser component stocks were :-

1. Genting SP  -0.015

2. SPH  -0.010
3. SingTel  -0.010
4. ThaiBev  -0.005

US markets closed mixed mostly down.  Asian bourses however were on a rally for the day with Nikkei +0.38%, SSE +1.00% and HSI +2.30%.  STI rose 0.62% in slightly higher volume and value with 22 of the 30 index stocks posted gain.

Positive US ISM data for August cushion the selling pressure due to Ukraine issue led to US markets closing mixed.  Asian markets were however posted gain after couple of events.  The effect of US better than expected ISM data, Japan Prime Minister Shinzo Abe named a China-friendly lawmaker for key posts in his cabinet and in the after an unexpected news that Ukraine and Russia have reached agreement to cease fire in Eastern Ukraine brought a relief rally for Asian bourses in the afternoon.  Investors will also be waiting for ECB meeting tomorrow in which most expecting some form of monetary easing.

STI finally broke the 3,340 resistance and this will be interesting going forwards.  While the blue chips moved up causing STI to close positive, the broader yet to move but has the underlying strength to move up.  Next couple of days will be interesting, the Ukraine-Russia ceasefire news and if ECB decided to act tomorrow, will force some panic short-covering and might bring investors back to bargain hunt in particularly those small and mid cap stocks.  The short get shot and the one who hold through the storm will get rewarded.

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