Tuesday, November 4, 2014

Market Summary -- 4th Nov 14

FTSE STI closed 3,281.57, down 9.27 points or -0.28% with a total volume of 1.89b and a total value of S$1.01b.  Total number of advance vs decline was 177 vs 251.  Of the 30 component index stocks, 9 closed positive, 1 unchanged and 20 in the red. The top 5 gainer component stocks were :-

1. Jardine C&C  +0.380
2. JMH 400USD  +0.150
3. DBS  +0.130
4. CityDev  +0.060
5. OCBC  +0.060

The top 5 loser component stocks were :-

1. UOB  -0.110
2. SembMar  -0.090
3. Olam  -0.080
4. SembCorp  -0.060
5. GLP  -0.050

US markets closed mixed yesterday and Asian bourses were also mixed for the day.  Nikkei +2.73%, SSE +0.03% and HSI -0.29%.  STI swinging between gain and loss closed -0.28% in thin volume and value with only 9 of the 30 index stocks managed to post gain.

Drop of crude oil price led energy stocks to a sell down but the positive data of ISM, rose to 59 in October failed to offset the sell down resulting in mixed closing for US markets.  Given the lack of lead, Asian bourses were faced with profit taking except for Nikkei with the support of weakening Yen drove it to new 7-year high.  Profit taking should not be come as a surprise given the rally for past days.  Markets can't go up in a straight line and in need of consolidation, building a base for further upside.

STI like regional bourses was faced with profit taking especially for those punters' stocks while the blue chips and those fundamental sound stocks were showing sign of resilience.  What is important now is for STI to consolidate and build a base.  Tracking money inflow or outflow by fund managers would be a better indicator as to where STI will be consolidating.

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