Wednesday, July 1, 2015

Market Summary -- 1st Jul 15

FTSE STI closed 3,331.14, up 13.81 points or +0.42% with a total volume of 909M and a total value of S$925M.  Total number of advance vs decline was 209 vs 208.  Of the 30 component index stocks, 16 closed positive, 3 unchanged and 11 in the red.  The top 5 gainer component stocks were :-

1. JSH USD  +0.800
2. SGX  +0.350
3. HongkongLand USD  +0.190
4. CityDev  +0.090
5. ComfortDelGro  +0.070

The top 5 loser component stocks were :-

1. Jardine C&C  -0.940
2. DBS  -0.190
3. JMH USD  -0.070
4. SPH  -0.030
5. Wilmar  -0.020
5. StarHub  -0.020

US markets closed positive yesterday and Asian bourese were mostly positive with Nikkei +0.46%, SSE -5.23% and HSI was closed for holiday.  STI after yesterday strong rebound managed to edge out a gain in thin volume and value with 16 of the 30 index stocks posted gain.

Despite Greece officially default on IMF payment, US markets managed to edge out a gain on the last day of 1H 2015.  Asian markets started 2H 2015 mostly on positive tone but with a bit of cautious except for SSE pretty much gave back yesterday gain with a sink of 5.23%.  China released its official PMI for June coming in at 50.2, unchanged from previous month and slight below the expectation of 50.3.  However, the HSBC final PMI still pointing to a contraction at 49.4, slight below the initial reading of 49.6.  The weak set of data staged a bull vs bear fight after SSE went into technical correction.  Greece officially became the first advance economy nation to default on IMF and focus now will be on 5th July referendum.  That outcome of the referendum will signify whether Greece will or will not stay in euro.  Following the default, the existing bailout package has expired and if the referendum indicating the Greeks still want to be remain in the euro, negotiation will take place next for perhaps a new bailout package.  The disadvantage will be to Greek then as creditors will demand all the austerity conditions to be agreed on for the new deal.  Next up will be US non-farm payroll data tomorrow before attention switch to the Greece's referendum and corporate earning.

STI despite the thin volume and value still manage to edge out a slight gain.  This could be a following up to the 1H window dressing yesterday and also possibility of funds positioning for corporate earning season which will be starting next week.  Meanwhile, most remained sideline and cautious ahead of this Sunday Greece referendum.  Focus should be on corporate earning now and not any other global events !

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