Wednesday, October 15, 2014

Market Summary -- 15th Oct 14

FTSE STI closed 3,198.72, up 4.32 points or +0.14% with a total volume of 1.43b and a total value of S$939M.  Total number of advance vs decline was 138 vs 299.  Of the 30 component index stocks, 17 closed positive, 4 unchanged and 9 in the red.  The top 5 gainer component stocks were :-

1. Jardine C&C  +0.300
2. DBS  +0.080
3. SIA  +0.080
4. CityDev  +0.070
5. UOB  +0.060

The top 5 loser component stocks were :-

1. JMH 400USD  -0.490
2. Kep Corp  -0.080
3. HongkongLand USD  -0.040
4. SIA Engg  -0.030
5. Wilmar  -0.020
5. StarHub  -0.020

US markets closed mixed with mostly positive and Asian bourses managed to close positive for the day with Nikkei +0.92%, SSE +0.63% and HSI +0.40%.  STI in line with regional bourses rebounded to close +0.14% in thin volume and value with 17 of the 30 index stocks posted gain.

It was another volatile session for US markets with them rising at much as 1% but to get sold down near market close after several of the banks beating market estimation on their earnings.  Asian markets were also volatile after China released its inflation data coming in at +1.6%, a 5-year low.  That initially worried investors in term of deflation turning markets into the red but managed to recover those losses to close positive.  Low inflation or deflation is very sensitive word nowadays given that Euro zone could get back into recession after it failed to curb deflation and Japan has to do a sales tax hike to counter deflation which impact its economy lately.  More corporate earning will be coming out for US this week and investors will be one eye focusing on those result and at the same time occupied with global economic weakness.

STI managed to rebound from past days or selling but at the moment upside is capped at the 3,220 level.  Blue chips were up so as majority of the S-Reits but the broader market in particular the pennies were seen weakness.  What needed now is for funds to get back in to those blue chips and fundamental strong stocks hopeful with the help of their respective strong set of earnings.  If not, more downside could be expected.

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