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06-02-2013, 07:16 AM
As a sentiment indicator, we should probably all be wary when we start reading articles like these in the news! I am very cautious in my approach now that optimism is rearing its head - not a good environment at all for purchasing securities with a margin of safety!
The Straits Times
www.straitstimes.com
Published on Feb 06, 2013
Investors enthused by rising market, especially among lower-cost punts
By Jonathan Kwok
TRADING volumes have gone through the roof this year as investors flock back to the share market, many with the hope of making a quick buck on penny stocks.
About 4.88 billion shares are changing hands during every trading session, more than twice the 1.78 billion average in the same period last year, Bloomberg data shows.
The value of those trades has risen too. The daily average of $1.8 billion this year is more than 40 per cent higher than the $1.28 billion in the same period last year.
The much greater jump in volume figures than the value reflects the lower average values of the units being traded, indicating that investors are keener on penny stocks and lower-cost punts.
"From December, I already had some clients that came in. Because January was such a good start, a few more of my clients came back," said remisier Desmond Leong. "The market volume reflects this."
He notes that January is usually a good month for the stock market as people start to position themselves for the rest of the year. The market - and trading volumes - also performed well in December compared with previous years so there had been some momentum leading into the new year.
While the general market has been on the rise, the really impressive gainers have been among the penny stocks that investors are focusing on.
The FTSE ST Catalist Index, which tracks stocks on the secondary Catalist board, has jumped 13.1 per cent this year while the FTSE ST Fledgling Index - it contains the mainboard's smallest stocks by market value - is up 15.3 per cent.
By contrast, the behemoths on the blue-chip Straits Times Index (STI) have had a much more muted showing. The index is up only 3.3 per cent for the year, while trading volumes of STI member stocks have actually dropped compared with last year.
An average of 262 million shares of STI stocks have changed hands each session this year, compared with last year's 360 million shares.
Still the market has had a strong showing, especially last month.
Singapore Exchange (SGX) figures out yesterday showed that the bourse's market capitalisation at Jan 31 hit a record for end-of-month values.
The combined value of all primary and secondary listings was $985.8 billion at the end of last month, SGX data shows.
That topped the previous record of $934.5 billion set at the end of December, which had in turn beaten the $921.5 billion value at the end of October 2007 - the market's peak before the global financial crisis.
Observers said the market has recently been boosted by rounds of money-printing by central banks in the United States, Japan and Europe.
There were 776 listed securities at the end of January, unchanged from December, SGX data shows.
There was one delisting during the month but also one new listing, so the number of securities listed remained unchanged.
There are more listed stocks now than at January last year, when there were 772 securities on the SGX.
jonkwok@sph.com.sg
The Straits Times
www.straitstimes.com
Published on Feb 06, 2013
Investors enthused by rising market, especially among lower-cost punts
By Jonathan Kwok
TRADING volumes have gone through the roof this year as investors flock back to the share market, many with the hope of making a quick buck on penny stocks.
About 4.88 billion shares are changing hands during every trading session, more than twice the 1.78 billion average in the same period last year, Bloomberg data shows.
The value of those trades has risen too. The daily average of $1.8 billion this year is more than 40 per cent higher than the $1.28 billion in the same period last year.
The much greater jump in volume figures than the value reflects the lower average values of the units being traded, indicating that investors are keener on penny stocks and lower-cost punts.
"From December, I already had some clients that came in. Because January was such a good start, a few more of my clients came back," said remisier Desmond Leong. "The market volume reflects this."
He notes that January is usually a good month for the stock market as people start to position themselves for the rest of the year. The market - and trading volumes - also performed well in December compared with previous years so there had been some momentum leading into the new year.
While the general market has been on the rise, the really impressive gainers have been among the penny stocks that investors are focusing on.
The FTSE ST Catalist Index, which tracks stocks on the secondary Catalist board, has jumped 13.1 per cent this year while the FTSE ST Fledgling Index - it contains the mainboard's smallest stocks by market value - is up 15.3 per cent.
By contrast, the behemoths on the blue-chip Straits Times Index (STI) have had a much more muted showing. The index is up only 3.3 per cent for the year, while trading volumes of STI member stocks have actually dropped compared with last year.
An average of 262 million shares of STI stocks have changed hands each session this year, compared with last year's 360 million shares.
Still the market has had a strong showing, especially last month.
Singapore Exchange (SGX) figures out yesterday showed that the bourse's market capitalisation at Jan 31 hit a record for end-of-month values.
The combined value of all primary and secondary listings was $985.8 billion at the end of last month, SGX data shows.
That topped the previous record of $934.5 billion set at the end of December, which had in turn beaten the $921.5 billion value at the end of October 2007 - the market's peak before the global financial crisis.
Observers said the market has recently been boosted by rounds of money-printing by central banks in the United States, Japan and Europe.
There were 776 listed securities at the end of January, unchanged from December, SGX data shows.
There was one delisting during the month but also one new listing, so the number of securities listed remained unchanged.
There are more listed stocks now than at January last year, when there were 772 securities on the SGX.
jonkwok@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
