Friday, July 31, 2015

Market Summary -- 31st Jul 15

FTSE STI closed 3,202.50, down 47.02 points or -1.45% with a total volume of 1.87b and a total value of S$2.17b.  Total number of advance vs decline was 135 vs 323.  Of the 30 component index stocks, 6 closed positive, 2 unchanged and 22 in the red.  The top 5 gainer component stocks were :-

1. HongkongLand USD  +0.060
2. Olam  +0.025
3. OCBC  +0.020
4. ThaiBev  +0.020
5. ComfortDelGro  +0.010

The top 5 loser component stocks were :-

1. UOB  -0.730
2. JMH USD  -0.720
3. Jardine C&C  -0.600
4. DBS  -0.530
5. Kep Corp  -0.300

US markets closed flat yesterday and Asian bourses were mixed but mostly higher for the day with Nikkei +0.30%, SSE -1.13% and HSI +0.56%.  STI unfortunately fell 1.45% in moderate volume but higher value with only 6 of the 30 index stocks posted gain.

US 2Q GDP firmed up giving further indication that US Fed could rate hike in September.  Asian bourses ended the month mostly higher except for China which still showing volatile.  The only data for the day was Japan CPI which edged up slightly.  Beware what going up next in the stock market is bubble but what dropping down next could be gem in the future !

STI ended the day with a drop of 1.45% with selling off of blue chips due to fund managers doing month end window dressing.  The selling down should not be surprised as foreign funds withdrawing probably flowing back to US in anticipation of interest rate hike in September and also North Asia which having a more attractive valuation given the recent sell down.  The selling down by funds is a good sign as this will eventually lead to a bottom in the stock market for retail investors to bargain hunt.  As usual without any surprise, the funds will always be wrong on the selling !

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