Monday, October 20, 2014

Market Summary -- 20th Oct 14

FTSE STI closed 3,181.05, up 13.32 points or +0.42% with a total volume of 1.07b and a total value of S$1.04b.  Total number of advance vs decline was 243 vs 173.  Of the 30 component index stocks, 17 closed positive, 6 unchanged and 7 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.670
2. SIA Engg  +0.170
3. Kep Corp  +0.150
4. Jardine C&C  +0.120
5. DBS  +0.100

The top 5 loser component stocks were :-

1. JSH 500USD  -0.280
2. SIA  -0.030
3. SGX  -0.020
4. Capitaland  -0.020
5. Noble  -0.015
5. Genting SP  -0.015

US markets closed at least +1% last Friday and Asian bourses taking the cue were positive for the day.  Nikkei +3.98%, SSE +0.66% and HSI +0.20%.  STI closed +0.42% in thin volume and value with 17 of the 30 index stocks posted gain.

The continue rebound from US markets probably triggered some short-covering and rush to buy by funds in order not to miss out the buy on dip opportunity.  For Asian markets, it was pretty much the same story with investors starting to think that bottom has been reached and slowly getting in to bargain hunt.  Couple of events to look for this week namely, corporate earning, ECB possibility of acting on its stimulus and China GDP data.  On top of that, the negative events probably are the geopolitical issue (ISIS and Hong Kong pro-democracy protest) and the Ebola virus.

STI managed to rebound from last week of selling.  This was helped with short-covering and funds starting to come back to bargain hunt.  The more stupid would be those funds who panicky sold last week and come back to buy again.  Has the worst over ? Like mentioned before, do not try to time to fish the bottom but rather look at individual stock for the valuation.  STI should be on a temporary rebound with 3,220 as the resistance.

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