Monday, July 13, 2015

Market Summary -- 13th Jul 15

FTSE STI closed 3,311.22, up 31.34 points or +0.96% with a total volume of 1.44b and a total value of S$872M.  Total number of advance vs decline was 281 vs 170.  Of the 30 component index stocks, 26 closed positive, 1 unchanged and 3 in the red.  The top 5 gainer component stocks were :-

1. DBS  +0.310
2. Jardine C&C  +0.230
3. UOB  +0.200
4. SIA  +0.160
5. SGX  +0.150

The 3 loser component stocks were :-

1. JSH USD  -0.360
2. Olam  -0.050
3. Genting SP  -0.005

US markets rose at least 1.2% last Friday and Asian bourses were positive for the day with Nikkei +1.57%, SSE +2.41% and HSI +1.30%.  STI advanced 0.96% in thin volume and value with 26 of the 30 index stocks posted gain.

Optimism of a possible Greece bailout deal helped US markets to rise at least 1.2% last Friday despite US Fed Chairman insisted that there will be rate hike this year.  Over the weekend, the Greece issue took several twists and turns before something positive finally come out of the EU Summit.  Firstly, EU Finance Ministers wanted the Greek Government to pass law by this Wednesday to enforce those austerity measures mentioned in the proposal to show truth before any negotiation of the bailout would go forwards.  At one point, Germany came out an alternate solution that is allowed the Greece to have a 5-years "timeout" from euro (that is temporary exit euro) so that they could restructure their debts and economy should a bailout deal could not be reached over the weekend or Greek Government fails to pass those austerities as law by this Wednesday deadline.  That view has temporarily shakes the global markets a bit but the last minute agreement of the aid-for-reform deal (pass the austerity law and get the deal) eventually lifted the negative sentiment.  That helped Asian markets some reverse course to move up higher.  China released its trade data this morning with export recovered in June but import still weak.  Despite the mixed data, both still managed to beat expectation and that further eased the pressure on China stock market after past week of sharp sell down.  Investors should be looking at this Wednesday what the Greek Government will do.  The Greek Government appears to be making a clown out of themselves after last month referendum vote and now everything go back to square one with austerity still in place (maybe even more) in order to get the bailout.

STI in line with regional markets rose 0.96% moving back to above the 3,300 level with the help of bargain hunting and some short-covering.  There was still some cautiousness as indicated by the thin volume.  The Greek saga should have minimum impact on Singapore economy and the bigger picture should be focusing on the ongoing corporate earning.  Again, this week could be the last chance to bargain hunt !

No comments:

Post a Comment