Tuesday, June 2, 2015

Market Summary -- 2nd Jun 15

FTSE STI closed 3,340.75, down 51.36 points or -1.51% with a total volume of 1.52b and a total value of S$1.75b.  Total number of advance vs decline was 135 vs 340.  Of the 30 component index stocks, 7 closed positive, 2 unchanged and 21 in the red.  The top 5 gainer component stocks were :-

1. HongkongLand USD  +0.130
2. AscendasReit  +0.070
3. GLP  +0.030
4. StarHub  +0.020
5. Wilmar  +0.020

The top 5 loser component stocks were :-

1. Jardine C&C  -1.460
2. JMH USD  -1.040
3. JSH USD  -0.680
4. UOB  -0.540
5. DBS  -0.450

US markets closed a tad higher yesterday and Asian bourses were mostly in the red with Nikkei -0.13%, SSE +1.72% and HSI -0.47%.  STI reopened from holiday yesterday fell 1.51% in higher daily volume and value than past days with only 7 of the 30 index stocks posted gain.

US markets closed slightly higher after household income and construction spending improved but Asian markets were unable to track the lead.  Nikkei ended a 12-days winning steak but SSE coupled with yesterday gain almost recovered fully from last week that 6.5% one day plunge.  The event that led to most markets closed lowered was RBA maintained interest rate on hold, disappointing investors.  Other than that, focus is on Greece whether they can eventually strike a deal before 5th June in which they need to repay IMF.  Another event to watch this week is the OPEC meeting on 5th June also.  Investors will be looking at whether will there a supply cut during the meeting.  Based on latest news, apparently, supply cut is not very possible and might see oil price fell again after the meeting.

STI continued the selling off without any surprise and if the 3,350 level is unable to hold, further selling will accelerate in the next few sessions.  That is nevertheless a bad news, the accelerating in selling only prompt a quicker than expected bargain hunt opportunity.  Look not so much of where STI will drop to as it is can be very easily "controlled" by just playing around the Jardine group of stocks so that they could gain from the derivative market namely STI future.

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