Thursday, July 30, 2015

Market Summary -- 30th Jul 15

FTSE STI closed 3,249.52, down 34.48 points or -1.05% with a total volume of 2.13b and a total value of S$1.15b.  Total number of advance vs decline was 152 vs 282.  Of the 30 component index stocks, 5 closed positive and 25 in the red.  The 5 gainer component stocks were :-

1. Wilmar  +0.040
2. Olam  +0.025
3. GLP  +0.020
4. SPH  +0.010
5. HPH Trust USD  +0.005

The top 5 loser component stocks were :-

1. SIA  -0.540
2. DBS  -0.290
3. SGX  -0.200
4. SingTel  -0.160
5. JSH USD  -0.140

US markets close with a gain of at least 0.40% yesterday but Asian bourses were mostly down for the day with Nikkei +1.08%, SSE -2.20% and HSI -0.49%.  STI fell 1.05% in moderate volume and value with only xx of the 30 index stocks posted gain.

US markets closed positive after US Fed maintained low interest rate, cited positive in economy recovery but just failed short of indicating when will be the first rate hike.  That make September a very likely scenario for rate hike.  Asian markets failed to keep track with US markets performance as the volatility in China market continued dragged down general sentiment.  Data to watch tonight will be US 2Q GDP.

The selling on STI continued as market fell 1.05% mainly due to the blue chips and S-Reits in general also faced selling pressure as possibility of September rate hike increases.  The selling of the blue chips could be due to fund managers adjusting portfolio for month end window dressing.  Short-term wise the selling pressure might persist especially S-Reits but do watch out for bargain hunting in the S-Reits.  The irrational selling of S-Reits due to interest rate hike will also present long-term investors the best opportunity to buy into them at the higher dividend yield.

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