ASEAN KEY DESTINATIONS
09 April 2014
The Straits Times Index (STI) ended +5.83 points higher or +0.18% to 3209.92, taking the year-to-date performance to +1.42%.
The FTSE ST Mid Cap Index gained +0.41% while the FTSE ST Small Cap Index gained +0.52%. The top active stocks were SingTel (-0.27%), Golden-Agri (+3.39%), AusGroup (+22.89%), DBS (+0.12%) and Noble Group (-3.52%).
The outperforming sectors today were represented by the FTSE ST Technology Index (+1.00%). The two biggest stocks of the FTSE ST Technology Index are Silverlake Axis (+1.14%) and STATS ChipPAC (+6.58%). The underperforming sector was the FTSE ST Utilities Index, which declined -0.59% with Hyflux’s share price gaining +0.41% and HanKore’s share price remaining unchanged. The FTSE ST Oil & Gas Index gained +0.27%. The FTSE ST Telecommunications Index declined -0.29%.
The three most active Exchange Traded Funds (ETFs) by value today were the IS MSCI India (+0.61%), DBXT MSCI Taiwan ETF (unchanged), Lyxor ETF Asia (+0.86%).
The three most active Real Estate Investment Trusts (REITs) by value were Suntec REIT (+0.59%), CapitaMall Trust (+1.54%), CapitaCommercial Trust (+1.95%).
The most active index warrants by value today were HSI22800MBeCW140529 (+20.88%), HSI22200MBeCW140429 (+18.58%), HSI22200MBeCW140529 (+12.68%).
The most active stock warrants by value today were KepCorp MBeCW140901 (+0.58%), DBS MB eCW140604 (-2.35%), UOB MB eCW140801 (-3.05%).
Singapore Stock Market
*ST Index 3,209.92 +5.83 3,204.09 +10.5
Volume: 2,194.9M 1,978.9M
Value: $1,196.9M $1,101.6M
Gainers/Losers: 274/177 260/164
Daily Market Commentary (Securities)
9 Apr 2014
The FBM KLCI index gained 3.44 points or 0.19% on Wednesday. The Finance Index increased 0.08% to 16895.8 points, the Properties Index up 0.52% to 1397.79 points and the Plantation Index rose 0.10% to 8943.56 points. The market traded within a range of 4.62 points between an intra-day high of 1856.03 and a low of 1851.41 during the session.
Actively traded stocks include PDZ, GSB, LUSTER, LEWEKO, TALAMT, SYMPHNY, INFOTEC, MAS, KNM-WA and GPA. Trading volume increased to 2216.95 mil shares worth RM2379.44 mil as compared to Tuesday’s 1894.88 mil shares worth RM2087.55 mil.
Leading Movers were TENAGA (+10 sen to RM11.90), PETCHEM (+6 sen to RM6.81), IOICORP (+4 sen to RM4.88), IHH (+5 sen to RM3.84) and GENTING (+6 sen to RM9.79). Lagging Movers were SKPETRO (-5 sen to RM4.45), KLK (-22 sen to RM23.52), MAYBANK (-2 sen to RM9.72), PBBANK (-2 sen to RM19.88) and IOIPG (-3 sen to RM2.72). Market breadth was positive with 462 gainers as compared to 336 losers.
The KLCI rebounded from yesterday’s loss to end 3.44 points higher at 1855.75, tracking the overnight gains in Wall Street. The performance of our benchmark index was lifted by gains in heavyweight counters led by Tenaga.
As of 9 April 2014 Unit: M.Baht
Type Buy Sell Net
Institution 1,439.08 2,972.99 -1,533.91
Proprietary 2,321.63 2,907.90 -586.26
Foreign 8,213.92 6,487.30 1,726.62
Individual 10,215.91 9,822.35 393.56
Total Trading Value 22,190.54 M.Baht
SE Asia Stocks-Tad firmer; Thai shares edge up from 1-week low on foreign inflows
Southeast Asian stock markets ended slightly firmer on Wednesday, as investors shifted to risky assets in Asia, with Thai shares recovering on foreign inflows after it fell to a more than one-week closing low in the previous session.
Revived investor appetite for emerging markets helped Asian stocks hit a near six-month high on Wednesday, a day after Wall Street reversed a three-day losing streak.
Thailand stock index ended up 0.2 percent, led by construction and banking shares, recovering from the lowest close since March 31 on Tuesday.
Bangkok enjoyed a net foreign inflow of $53.4 million on Wednesday, extending net foreign buying to $95.5 in the two sessions.
Bangkok-based KGI Securities in a note said investors were monitoring external factors such as U.S. Federal Reserve minutes, which will be released later in the day, and upcoming U.S. earnings results for more cues.
The Singapore stock index ended up 0.2 percent, gaining for a second straight session.
Shares in Golden Agri-Resources outperformed the market with a 3.4 percent gain while Noble Group Ltd lost 3.5 percent.
Malaysian stocks also edged up 0.2 percent with a foreign inflow of $21.34 million.
Stock markets in the Philippines and Vietnam were closed for a holiday, while Indonesia was also shut due to parliamentary elections on Wednesday.
Millions of Indonesians voted for a new parliament in a poll led by the opposition Indonesian Democratic Party-Struggle (PDI-P), boosting the chances of its popular candidate in a presidential election three months from now, a move that has been welcomed by the markets and investors.
SOUTHEAST ASIAN STOCK MARKETS
Market Current Prev Close Pct Move
TR SE Asia Index* 418.88 417.20 +0.40
Singapore 3209.92 3204.09 +0.18
Kuala Lumpur 1855.75 1852.31 +0.19
Bangkok 1382.02 1379.34 +0.19
US stocks rise for the first time in four days
That was the sentiment on Wall Street Tuesday as the stock market broke a three-day losing streak. The gain pushed the Standard & Poor's 500 index back into positive territory for the year.
The rebound was driven partly by bargain-hunting as investors picked up stocks that hold fallen the most in the slump over the previous three days. Utilities stocks also rose sharply as skittish investors bought less-volatile stocks.
"Longer-term investors should really use this as an opportunity to buy attractive areas that have sold off," said Kristina Hooper, US Investment Strategist at Allianz Global Investors. "For them, stocks are on sale."
Stocks have had a volatile start to April. After closing at a record last Wednesday amid optimism about the improving outlook for the economy, stocks fell sharply on Friday as investors decided that some of the high-flying stocks in the technology and biotech sectors no longer justified their lofty valuations.
The S&P 500 rose 6.92 points, or 0.4 percent, to 1,851.96. The Dow Jones industrial average climbed 10.27 points, or 0.06 percent, to 16,256.14. The Nasdaq composite rose 33.23 points, or 0.8 percent, to 4,112.99.
Even as investors sent stocks higher, they were still being cautious. Investors typically buy utilities stocks when they are worried about volatility in the market. That's because those companies pay big dividends and demand for the power they generate tends to be stable, regardless of how the economy is doing.
On Tuesday, utilities rose 1.5 percent. The sector has gained 10.5 percent this year, making it by far the best performing industry group in the S&P 500. Health care stocks are the next best performers, gaining 2.7 percent over the same period.
Technology stocks and consumer discretionary stocks, among the biggest decliners in the three-day sell-off, also logged gains on Tuesday.
Facebook rose $1.24, or 2.2 percent, to $58.19. Google's class newly issued C shares rose $16.75, or 3.1 percent, to $554.90.
The recent volatility is making it tough for investors who are looking to get back into stocks after switching their investments to cash and bonds in the aftermath of the financial crisis and the Great Recession, said Mike Mussio, a managing director with FBB Capital Partners, a wealth management company.
"It is a little nerve-wracking for people entering the market just now, with cash they've had on the sidelines," said Mussio.
Corporations start reporting first-quarter earnings this week, which should help stabilize the market, said Joe Quinlan, chief market strategist at U.S. Trust. Quinlan attributed the stock market's recent wobble to investor's jitters ahead of corporate earnings.
Alcoa gained 28 cents, or 2.2 percent, to $12.81 in after-hours trading after the aluminum company posted earnings that beat analysts' expectations. Alcoa earned 9 cents a share after adjusting for the cost of idle capacity at aluminum smelters and mills. Wall Street analysts had forecast earnings of 5 cents a share.
Overall, corporate earnings are forecast to grow just 0.2 percent in the first quarter compared with the same period a year ago, according to S&P Capital IQ. That would be the weakest showing since the third quarter of 2009, when earnings contracted 1.7 percent.
"Seems like every time we come up to earnings season we get a little nervous," Quinlan said. "This will pass."
Energy company Chevron, and banks Wells Fargo and JPMorgan will report their earnings for the first quarter this week, as will Bed Bath & Beyond.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.68 percent from 2.70 percent on Monday.
Among other stocks making big moves:
— Whole Foods Market gained $1.09, or 2.2 percent, to $51.38 after analysts at UBS raised their price target for the stock to $70 from $62. The analysts are optimistic that the high-end grocery store chain will be able to increase its profit margins as it expands.
—Gilead Sciences fell $2.22, or 3.1 percent, to $70.01 following reports that Express Scripts, the largest U.S. pharmacy benefits manager, plans to ask its clients to join a coalition that would stop using Gilead's Sovaldi Hepatitis C treatment once a rival medicine is approved for the U.S. next year. Express Scripts estimates that U.S. spending on Hepatitis C medications will surge 1,800 percent in 2016. Lawmakers last month have already questioned the pricing of Gilead's new drug.
— Dr. Pepper Snapple Group fell $2.06, or 3.8 percent, to $51.62 after Wells Fargo Securities cut their outlook for the company's earnings. The analysts say that the stock has peaked and that the company has limited opportunities to further increase productivity and that its beverages are continuing to lose market share.