Wednesday, June 17, 2015

Market Summary -- 17th Jun 15

FTSE STI closed 3,325.91, up 27.82 points or +0.84% with a total volume of 1.38b and a total value of S$1.27b.  Total number of advance vs decline was 288 vs 137.  Of the 30 component index stocks, 16 closed positive, 4 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. JMH USD  +1.120
2. Jardine C&C  +0.760
3. DBS  +0.240
4. JSH USD  +0.210
5. UOB  +0.190

The top 5 loser component stocks were :-

1. CapitaMall  -0.050
2. Ascendas Reit  -0.040
3. SembMar  -0.020
4. StarHub  -0.010
5. SIA Engg  -0.010
5. Sembcorp  -0.010
5. Capitaland  -0.010

US markets rose at least 0.5% yesterday and Asian bourses mostly managed to rebound from yesterday selling down with Nikkei -0.19%, SSE +1.66% and HSI +0.70%.  STI rebounded 0.84% in higher volume and value than yesterday with 16 of the 30 index stocks registered positive closing.

The concern of Greece default and exit from euro still remain and most expecting US Fed to announce rate hike this September too.  However, investors managed to put those worries aside and bargain hunt US markets for a rebound.  Taking the lead, Asian markets managed to stage the same performance except for Nikkei which was affected by the trade data.  Japan export rose 2.4% in May but still missed expectation and import fell 8.7% most than expected too.  While most will be trying to guess when US Fed will start rate hike but they are also the one that analyze wrongly.  The underlying is not when US Fed will rate hike but rather the post rate hike policy.

STI rebounded from yesterday selling down, climbing back above the 3,300 level with bargain hunting and short-covering for the blue chips in particular banking and Jardine group of stocks.  The slight positive sentiment spread to the broader market with some bargain hunting observed too.  However, rate sensitive stocks like S-Reits were having a edgy day as can see some selling probably by funds.  Isn't it too late to sell now from the funds ?  The sell down due to rate hike fear for S-Reits will only present nothing but bargain hunting opportunity.

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