Tuesday, June 30, 2015

Market Summary -- 30th Jun 15

FTSE STI closed 3,317.33, up 37.15 points or +1.13% with a total volume of 1.18b and a total value of S$1.26b.  Total number of advance vs decline was 250 vs 173.  Of the 30 component index stocks, 20 closed positive, 5 unchanged and 5 in the red.  The top 5 gainer component stocks were :-

1. JMH USD  +1.450
2. DBS  +0.390
3. SIA  +0.200
4. UOB  +0.170
5. Capitaland  +0.100
5. HongkongLand USD  +0.010

The 5 loser component stocks were :-

1. JSH USD  -0.120
2. Jardine C&C  -0.050
3. Sembcorp  -0.020
4. SPH  -0.010
5. Genting SP  -0.005

US markets tanked average 2% yesterday but Asian bourses did a rebound with Nikkei +0.63%, SSE +5.55% and HSI +1.09%.  STI rebounded with 1.13% closing in typical volume and value with 20 of the 30 index stocks posted gain.

Greece concerns sank US markets 2% overshadowed news that Chinese Government did another round of monetary easing.  However, Asian markets were able partly due to slight ease of fear on Greece issue and 1H window dressing.  It is almost certain that Greece will default on its payment today and whether they can still stay in the euro in another issue.  Should they exit euro will not mean a bad thing either.  What's important is how EU handle the scenario of a Greece exit.  On the other hand, if the referendum on 5th July is to accept the bailout condition, Greece could still stay in the euro but the debt issue will be another point of issue to be discussed.  Greece issue is not something new since 2011 and each year the problem surfaced again and again.  Should Greece default and exit euro, it should not be something shocking either and those creditors should have prepared for the loss.  If they don't, they deserve for the loss then.  Other closely watch events for the week will be tomorrow China official PMI and Thursday US non-farm payroll.  SSE has technically entered bear market after more than 20% correction and today rebound of 5.55% managed to bring it back to below 20%.  Should the rebound be sustainable, more funds will be re-entering SSE in 2H and the bull run will resume.

STI rebounded to move above 3,300 level.  The 1H window dressing did indicate that funds still pretty much vested in Singapore market and should be a good sign despite all the negative events and sentiments currently.  Focus will be on next month corporate earning and if market going into a sell down due to Greece issue (even if Greece exit euro), it will be bargain hunt opportunity.

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