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STI to cross 3000 boosted by long-term investors
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teeth53
Supreme |
16-Aug-2007 08:58
Yells: "don't learn through life, learn to grow with life " |
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STI is down on contiune sub-prime woes, now spreading to Key currencies as investors sell assets funded by Yen loans and also ripple effecting short term securities. This will put more pressure on oil price to go lower as consumer growth slow on 2H. |
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ivorycoast
Elite |
16-Aug-2007 08:37
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Got this feeling that pennies might be the bright sparks of the day. Caution ..... as usual, no shorting of Jade please ..... A rotational of those Jade-alike could be possible ..... |
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jng1103
Senior |
16-Aug-2007 02:44
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Good news or bad news? US Federal Reserve pumps US$7b into markets WASHINGTON : The US Federal Reserve said on Wednesday it has injected US$7 billion into the jittery financial system to meet increased liquidity demands. The Federal Reserve Bank of New York, which handles the operations of the short-term federal funds market, made the cash infusion, a spokesman for the New York Fed said. The amount was much smaller than the Fed's injections late last week to ease credit crunched by problems in the high-risk sub-prime mortgage sector. The Fed pumped a total of US$38 billion into the financial system on Thursday and US$24 billion on Friday. The central bank added US$2 billion on Monday but did not intervene on Tuesday. Under normal circumstances, these almost-daily operations add about US$5 billion to US$10 billion a day to the markets. Before markets opened on Wall Street on Wednesday, the New York Fed said that market conditions suggest that an injection will be needed in the federal funds market "to accommodate heightened reserve needs." The bank said it "stands ready to conduct further operations later in the day if needed." |
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skeleton
Member |
16-Aug-2007 01:08
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Are we ready for a series of roller coaster ride ? Singapore share prices plunged 3.35 percent on Wednesday, clobbered by the escalating fallout from the crisis in the US sub-prime mortgage market, dealers said. News that more hedge funds are being squeezed in the US credit market's troubles led many investors to sell down portfolios, causing heavy losses across the region, they said. The Straits Times Index fell 113.34 points to 3,273.25 on volume of 2.43 billion shares worth S$2.61 billion. DBS Vickers Securities' retail market strategist, Yeo Kee Yan, said the worsening sub-prime mortgage woes in the US continued to be a drag and further declines are likely after the benchmark index broke through the 3,300-point psychological support level. "The downtrend is still there, we could see the index correcting to 3,150 in the next few months," Yeo said. "We still don't know the outcome of this sub-prime problem in the US." Apart from the unravelling of the US sub-prime credit market, Yeo said he is concerned that a sharp correction in the Chinese stock market could trigger another wave of selling across the region. A renewed spike in oil prices during the hurricane season in the United States could also add to the markets' volatility, he said. |
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skeleton
Member |
16-Aug-2007 01:01
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Asian stock markets suffered another mauling Wednesday as investors braced for more bad news on US mortgages, dashing hopes that the worst of the recent turmoil might be over. The latest wave of selling came despite recent efforts by the world's major central banks to restore calm to global markets by pumping billions of dollars of emergency funds into the banking system. Dealers said that although Asia's exposure to the US mortgage problems appeared to be limited, the fear is that foreign funds will be forced to sell Asian stocks to cover losses on sub-prime loans to risky borrowers. "Things are still very shaky in the States and that's really driving a lot of the concerns at the moment," said Lorraine Tan, vice president of Asia equity research at Standard & Poor's in Singapore. "The markets haven't stabilised yet. Unless there's some sign of things stabilising it's still going to be very volatile," she said. The Tokyo market buckled after two days of relative calm that had raised hopes that markets might have finally hit a bottom after recent plunges. The Nikkei-225 index slumped 2.19 percent to an eight-month low. A stronger yen hit exporters after the Japanese currency spiked up to four-month highs against the euro and the dollar on an unwinding of risky carry trade bets that play on differences in global interest rates. Recent market turbulence has prompted investors to seek shelter in safe-haven investments such as US government bonds, dealers said. "It appears that foreign players have moved aggressively to cash in equities holdings in order to restructure their portfolios in favour of bonds," said Yukihiro Takahashi, a market analyst at Ichiyoshi Securities in Tokyo. US and European stock markets sustained heavy losses Tuesday as concerns lingered about a potential credit crunch, setting Asian bourses up for another nail-biting day as jittery investors fretted more bad news might come out. Adding to jitters, reports said a US investment firm, Sentinel Management Group, had frozen a 1.5 billion dollar fund because it has been overwhelmed by investors trying to withdraw their money. And Japanese megabank Mitsubishi UFJ Financial Group (MUFG) said it had suffered about 43 million dollars in losses on US sub-prime loans, sending its shares sharply lower. The heavy losses overseas came despite another big injection of funds by the European Central Bank into the banking sector Tuesday, even as ECB chief Jean-Claude Trichet said conditions in money markets were returning to normal. Amid continued signs of ample liquidity in the Japanese banking system, the Bank of Japan further drained down excess funds on Wednesday, announcing it would withdraw an additional 2.0 trillion yen (17.0 billion dollars). Investors, however, remained extremely jittery. Jakarta was punished most with a 6.4 percent tumble, Hong Kong was down 2.87 percent, Singapore lost 3.35 percent, while Manila ended down 4.1 percent and Taipei slumped 3.57 percent. Wellington closed 1.53 percent lower while Sydney lost 3.0 percent. Kuala Lumpur shed 2.8 percent and Bangkok was down 2.51 percent. Shanghai's Composite Index was down 0.06 percent, cushioned somewhat by a positive response to news that regulators had eased rules on bond issues by listed firms. Seoul and Mumbai were closed for public holidays. Analysts, however, remained optimistic that the impact on the Asian economies of the US mortgage problems would be limited. Asian firms appeared to have limited exposure to the US sub-prime woes, said Tan at S and P. "At this stage we still believe that the global economic picture is pretty much intact. Even if the US does slow a little bit it shouldn't have a significant impact on growth drivers" in Asia, she added
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yammay74
Member |
15-Aug-2007 23:57
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Could BOJ have been called by Fed to keep yen low so that the game could go longer? If yen is kept low, isn't this good news? |
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Manikamaniko.
Master |
15-Aug-2007 23:37
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Newmoon... :) |
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lausk22
Veteran |
15-Aug-2007 23:27
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after the sub-prime, watch out for the return of the yen carry trade to haunt the market in this ghostly month.... |
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newmoon
Veteran |
15-Aug-2007 18:23
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It may be tine to change this forum heading soon to; STI to cross 3000 depressed by long term sellers(desperate and dispirited and depressd) after a long love affair with Market Mistress threatening to reveal all the lowdown in youtube. |
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maipenrai
Member |
15-Aug-2007 17:39
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Orr Bak Kak Liao.... 
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Manikamaniko.
Master |
15-Aug-2007 17:36
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With many stocks having already fallen significantly, the STI only just starts to show some sign of weakening. |
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newmoon
Veteran |
15-Aug-2007 17:16
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Henry Kaufman in daily reckoning today The 3 Ations; financial changes leading to a recession !st Ation-securitization- by magic a liability is turned into an asset -This asset is a mortgaged backed bond which is difficult to price. 2nd Ation;Digitilization of financial trading eg.program trading or black box trading 3rd Ation-quantification-that any mathematical model can accurately predict the behaviour of a complex organic system like the stock market which has so many variables Frankly I am not sure what it means do you? |
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victorf
Master |
15-Aug-2007 17:01
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market is still uncertain...and for short term traders, my adivce is BE DISCLIPINE...for long term investor, my advice is to buy over a period on dip for good stocks...good luck...BEST ALTERNATIVE is NO MOVEMENT by INDIVIDUAL until certainty regains and i will make a call soon when it arrives...good luck |
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Pinnacle
Master |
15-Aug-2007 16:58
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What I mean is your reason is only 1 element out of many many factors that caused the red sea. You mentioned unit trust, yes, that is also another valid element. Well, sentiment is another one, Shortists too, BBs cashing out... exercising options... panic sell... etc... Many things come together... Just one or 2 elements will not cause almost 6 weeks of sell down. |
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lausk22
Veteran |
15-Aug-2007 16:49
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mani....:)...lai lai ganbei let us have an ice cold Tiger bear...oops I mean beer for a change..the bearish mood must have gotten on to me ... 
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sohguanh
Veteran |
15-Aug-2007 16:46
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Pinnacle: if it is not only force sell then wat could it be? my tot was could it be ppl who invest in Unit Trust all wanna redeem at same time and then fund manager got no choice but to liquidate his holdings at a cheap price to bargain buyers in order to meet the investor redemption request? would appreciate if you could shed some light on why it is red red color :O |
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Manikamaniko.
Master |
15-Aug-2007 16:37
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The stock market survives because of "Superheated Frogs" and "Ice-Cold Bears"... |
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Pinnacle
Master |
15-Aug-2007 16:35
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This will not solve the problem. Not sure whether you are aware, for US market, you have to pick up the tab even if you contra. Which mean you have to pay for whatever you buy. No empty buy, empty sell. And look at them, still seeing red. So its not really as simple as just about force sell. |
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sohguanh
Veteran |
15-Aug-2007 16:29
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Actually I was tinkin becuz brokerage houses allow ppl to contra, short and margin lend and that's why when major sell down occurs alot of ppl cannot pay up so their shares are force sell to ppl at lower price. this leads on to the share price of the stock dropping drastically. Solution: BAN contra, short and margin lend. every trade is one hand pass up monies one hand get the shares. can u imagine u go NTUC buy goods on credit, eat finish already then go back NTUC pay up your monies? :P |
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ivorycoast
Elite |
15-Aug-2007 16:21
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Is this a possibility ? If tonight DJ turn red again ..... a likelyhood that DJ may recover the day after ..... So STI up or down tomorrow ..... can have a feel ..... STI likely up in anticipation of a recovery the day after ? |
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