Thursday, October 23, 2014

Market Summary -- 23rd Oct 14

FTSE STI closed 3,236.50, up 33.76 points or +1.05% with a total volume of 1.30b and a total value of S$1.10b.  Total number of advance vs decline was 274 vs 138.  Of the 30 component index stocks, 21 closed positive, 5 unchanged and 4 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +0.970
2. JSH 500USD  +0.330
3. OCBC  +0.180
4. SGX  +0.170
5. HongkongLand USD  +0.160

The 4 loser component stocks were :-

1. Jardine C&C  -0.120
2. SembMar  -0.040
3. ST Engg  -0.010
4. GLP  -0.010

US markets gave up earlier gain and closed in the red with at least 0.7% drop.  Asian bourses taking the cue were mostly in the red.  Nikkei -0.37%, SSE -0.98% and HSI -0.30%.  STI reopened from yesterday holiday playing catchip managed to close +1.05% in thin volume and value with 21 of the 30 index stocks posted gain.

Profit taking, below expectation corporation earning, drop in crude oil price and Canadian shooting caused US markets to gave up initial gain and close in the red.  Asian bourses after past days of gain also fell to profit taking even after China HSBC flash PMI data for October.  The figure came in at 50.4, slightly above expectation of 50.2 but was at a 5-month low reading.  That report might have caused some speculation that Chinese Government could unveil additional stimulus.

STI continued the rebound closing above the resistance of 3,220 level but came with thin volume and value.  Bargain hunting and snapping up of high-yield stocks were observed across the broad.  So far corporate earnings have not disappoint and that providing some cushion to the downside.  An interesting observation was just last month funds were seen selling high-yield stocks like S-Reits due to fear of US interest rate hike soon and now these stocks are in "panic buy" mode by funds (probably those who sold last months).  Totally irrational and once again proved that funds (most of them) and analysts were never correct about market.  Short-term wise might see some pull back or profit taking by STI but that should be seen as buying opportunity especially for those who missed last week.

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