Friday, July 3, 2015

Market Summary -- 3rd Jul 15

FTSE STI closed 3,342.73, up 14.89 points or +0.45% with a total volume of 1.27b and a total value of S$779M.  Total number of advance vs decline was 163 vs 248.  Of the 30 component index stocks, 18 closed positive, 5 unchanged and 7 in the red.  The top 5 gainer component stocks were :-

1. DBS  +0.410
2. SIA  +0.240
3. UOB  +0.100
4. OCBC  +0.080
5. CapitaMall  +0.050

The top 5 loser component stocks were :-

1. JMH USD  -0.610
2. Jardine C&C  -0.520
3. JSH USD  -0.110
4. SGX  -0.080
5. Sembcorp  -0.010
5. GLP  -0.010
5. CityDev  -0.010

US markets closed slight lower yesterday and Asian bourses were mixed for the day with Nikkei +0.08%, SSE -5.84% and HSI -0.83%.  STI fared better than regional bourses closing +0.45% in typical volume but thin value with 18 of the 30 index stocks posted gain.

US non-farm payroll data came in slight below expectation while unemployment rate dropped from 5.5% to 5.3%.  That set of neither weak or strong data caused again division on whether US Fed will rate hike in September or not.  For Asian markets they were mostly cautious given the weak lead from US markets overnight and uncertainty ahead of Sunday Greece's referendum vote.  However, for SSE it was a different story as it plunged almost 6% after news that Chinese market regulator launched a probe into suspected market manipulation.  Adding to that, China's service sector growth also came in slowest in 5 months.  With the Chinese stock market technically in bear, the probing definitely caused further worries.  What need to be done for Chinese stock market is for analysts to release report of rightfully valuation of the stocks to calm the market so that whatever overvalued stocks will have to correct and thereby stabilizing the market.  Rest of the world will be monitoring for the outcome of Greece's referendum vote.  Do note that, a NO vote probably signal Greece euro exit might not be the worst case and similarly a YES vote might not be the best case as months later Greece will again be face with potential other defaults.

STI managed to outperform regional markets closing with a gain with probably funds leaving China market finding their way here.  While banking stocks moved the index higher, the Jardine group of stocks were capping the gain with negative closing.  Furthermore, yesterday MAS released new proposal for S-Reits which mostly benefit unitholders helped most of the S-Reits stocks ended positive.  Strictly speaking, even without the new proposals, investors should be positioning S-Reits ahead of their respective earning starting next week.  Remember, focus on the fundamental and not sway by noises.

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