Friday, May 29, 2015

Market Summary -- 29th May 15

FTSE STI closed 3,392.11, down 25.66 points or -0.75% with a total volume of 1.76b and a total value of S$2.19b.  Total number of advance vs decline was 192 vs 259.  Of the 30 component index stocks, 8 closed positive, 2 unchanged and 20 in the red.  The top 5 gainer component stocks were :-

1. CityDev  +0.110
2. HongkongLand USD  +0.060
3. SPH  +0.030
4. SembMar  +0.020
5. StarHub  +0.020

The top 5 loser component stocks were :-

1. JMH USD  -1.250
2. JSH USD  -0.760
3. UOB  -0.490
4. Jardine C&C  -0.480
5. SGX  -0.260

US markets closed slight down yesterday and Asian bourses were mostly in the red for the day with Nikkei +0.06%, SSE -0.15% and HSI -0.11%.  STI fared worse than regional bourses with a drop of 0.75% in higher daily volume and value than past days with only 8 of the 30 index stocks posted gain.

The rebound on US markets failed to sustain yesterday as the Greece's debt weighed as end of the month approaching while still no news of a deal.  Asian markets ended the last day of the month mostly in red with no positive news or events and fund managers window dressed down on their portfolio.  The only non-negative news for the day was Japan inflation rose 0.3% in April slightly better than the 0.2% from expectation.  That allowed Nikkei to close at another new 15-years high.  SSE failed to recover from yesterday 6.5% plunge as the tightening of margin trading rule by Chinese brokerages looked set to burst the equity bubble for the time being.

Unlike North Asia markets which are forming bubbles, STI was sold down and heading towards the next support level at 3,350 due to outflow of money by fund managers.  Question will be is it wise to sell off a market that is not forming any bubble and take the money to another market which is forming bubble ?  As expected there is a fund managers window dressed down for the day and this also confirmed that there will be good bargain hunting opportunities next month.  Focus on the fundamental stocks and aim at the cheap valuation !  


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