Thursday, May 2, 2013

Market Summary -- 2nd May 13

FTSE STI closed 3,402.39, up 34.21 points or +1.02% with a total volume of 2.16b and a total value of S$1.78b.  Total number of advance vs decline was 197 vs 220.  Of the 30 component index stocks, 14 closed positive, 6 unchanged and 10 in the red.  The top 5 gainer component stocks were :-

1. DBS  +0.760
2. UOB  +0.650
3. JSH 500US$  +0.290
4. SIA Engg  +0.180
5. HKLand US$  +0.140

The top 5 loser component stocks were :-

1. Jardine C&C  -0.580
2. KepCorp  -0.120
3. SPH  -0.050
4. StarHub  -0.030
5. SembMar  -0.030
5. Wilmar  -0.030

US markets fell average 0.90% yesterday night after disappointed ADP job data coming below expectation, ISM data also dropped from previous month, below expectation and US Fed FOMC meeting outcome was US Fed maintained status quo on its monetary policy.  Asian bourses were mixed but mostly able to pare losses with Nikkei -0.76%, SSE -0.17% and HSI -0.30%.  STI however, was on a different mindset rose 1.02% hitting the 3,400 level in another thin volume and value day.  14 of the 30 index stocks registered positive closing.

Yesterday both US and China reported below expectation data (ISM and PMI) and that dented the sentiment.  Despite the below expectation data, both set of data still indicating an expansion in the manufacturing activities.  Perhaps it is time investors need to change the mindset that global economy is shifting into a new norm, that is focusing on quality and sustainable growth in which the manufacturing activities will not be red-hot, economic growth will also not be on a high digit range.  Investors will be looking at tonight ECB meeting in which most are tipping ECB to cut rate.  Tomorrow will be US non-farm payroll data for April.

STI appeared to be on different mindset with the blue chips and index stocks (in particular DBS as its earning reported this morning beat market expectation) pushing up to another new 5 years high.  However, the broad market still weak as investors were still cautious on the global events.  The question will be if the index stocks and blue chips were moving higher, what will happen to the laggard and penny stocks ? Everything will come down to fundamental, if the laggards and penny stocks are of strong fundamental, they will play catch up next.