Wednesday, August 5, 2015

Market Summary -- 5th Aug 15

FTSE STI closed 3,191.39, up 0.35 points or +0.01% with a total volume of 1.72b and a total value of S$1.28b.  Total number of advance vs decline was 188 vs 243.  Of the 30 component index stocks, 14 closed positive, 1 unchanged and 15 in the red.  The top 5 gainer component stocks were :-

1. JSH USD  +0.500
2. JMH USD  +0.410
3. Sembcorp  +0.300
4. Kep Corp  +0.240
5. HongkongLand USD  +0.220

The top 5 loser component stocks were :-

1. Jardine C&C  -0.770
2. DBS  -0.120
3. SIA  -0.110
4. UOB  -0.080
5. SGX  -0.080

US markets closed down again falling average 0.2% yesterday.  Asian bourses however were mostly positive for the day with Nikkei +0.46%, SSE -1.62% and HSI +0.44%.  STI swinging between gain and loss closed flat in moderate volume and value with 14 of the 30 index stocks posted gain.

Selling from tech stocks pushed US markets lower as investors awaiting for tonight ADP job data and Friday non-farm payroll data.  Asian markets mostly managed to rebound from past days sell down.  China market again in volatile session despite the flash service PMI data for July came in at 53.8, rises to 11-month high.  Globally, investors look coming to consensus that US Fed will start to rate hike in September and hence positioning their portfolio for it.

The heavy selling for STI has eased as the index managed to edge out a tiny gain led by O&G stocks as crude oil price rebounded.  Banking stocks which weighed down STI still weak as concern of China slowing down put some pressure on them offset the potential of US Fed hike rate next month.  Broader market was mixed and should be entering consolidation phase in the next few weeks.  The possible prolong period of consolidation should present mid and long term investors with plenty of accumulation on weakness opportunities in particular the S-Reits in which the dividend yield is getting more and more attractive and potentially might have one more down leg before everything bottom out.

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