Thursday, October 9, 2014

Market Summary -- 9th Oct 14

FTSE STI closed 3,259.25, up 32.54 points or +1.01% with a total volume of 1.19b and a total value of S$1.05b.  Total number of advance vs decline was 236 vs 184. Of the 30 component index stocks, 23 closed positive, 4 unchanged and 3 in the red.  The top 5 gainer component stocks were :-

1. JMH 400USD  +1.100
2. JSH 500USD  +0.630
3. Jardine C&C  +0.600
4. UOB  +0.250
5. CityDev  +0.140

The 3 loser component stocks were :-

1. SPH  -0.050
2. Kep Corp  -0.050
3. SIA Engg  -0.030

US markets did an intra-day rebound and rallied to close at least 1.6% yesterday.  Asian bourses started the day taking cue from US rallies but closed mixed with Nikkei -0.75%, SSE +0.27% and HSI +1.17%.  STI rose 1.01% in those typical volume and value with 23 of the 30 index stocks posted gain.

US Fed FOMC minutes for September indicated that they were aware of the risk of global slowdown and hence will maintain interest rate low for the time being, no sooner than expected rate hike.  That pleased investors allowing US markets to recover early loss and rallied at least 1.6% with the S&P500 did an intra-day swing of 45 points, the biggest for this year.  Asian bourses cheered that by opening positive but closed mixed due to profit taking.  US started its earning season with Alcoa beating estimates with its result.  Whether it is a relief rally or the worst of the markets drop has been over is too early to confirm.

STI rose 1.01% but with the typical thin volume and value and the Jardine group of shares contributed to most of the rise.  There wasn't any rush of panic buy, short-covering lifted the index and the broader market was met with resistive sellers trying to sell off with any rallies.  For STI to have further upside, market need to absorb all the sellers and hope for some catalysts perhaps in the form of positive earning season.  The downside meanwhile is being supported at 3,220 level.

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