Friday, October 24, 2014

Market Summary -- 24th Oct 14

FTSE STI closed 3,222.55, down 13.95 points or -0.43% with a total volume of 1.18b and a total value of S$893M.  Total number of advance vs decline was 208 vs 202.  Of the 30 component index stocks, 7 closed positive, 2 unchanged and 21 in the red.  The top 5 gainer component stocks were :-

1. JSH 500USD  +0.340
2. CityDev  +0.060
3. Capitaland  +0.040
4. GLP  +0.010
5. OCBC  +0.010
5. StarHub  +0.010
5. Wilmar  +0.010

The top 5 loser component stocks were :-

1. Jardine C&C  -0.580
2. JMH 400USD  -0.240
3. UOB  -0.210
4. HongkongLand USD  -0.090
5. SIA  -0.080

US markets advanced another at least 1% yesterday but Asian bourses were mixed for the day with Nikkei +1.01%, SSE +0.01% and HSI -0.13%.  STI fell 0.43% in thin volume and value than past days with only 7 of the 30 index stocks posted gain.

US markets surged again on positive corporate earning but Asian bourses were mixed due to profit taking and concern of Ebola.  An Ebola case was detected in New York City from a doctor returning from treating patients in West Africa, that gave some "panic" to Asian bourses as investors were waiting for how US markets will react to it tonight.  While Ebola virus might cause some fear currently but as compared to the 2003 SARS, it is still not at that world panic and fear mode.  SARS was something that strike, spread fast and people did not know what it was and how to treat it then.  Ebola on the other hand, has been on the radar for past months in West Africa and just that it recently starting to spread to the rest of the world.  To react to Ebola in the same way as SARS would be overdone at the moment.

Without surprise, STI was done after past days or moving up, partly due to profit taking and partly taking cautious of the Ebola case in NYC.  The pull back should not be seen as something as panic selling but rather "orderly" pull back.  This will present opportunity for those who missed last week low to bargain hunt.  In another way, it allows STI to digest the rebound and consolidate to form a firmer support before the next move up.

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