Today’s stock market shows a bit of upward activity and it seems like the axiom “investors go away in the month of May” is quite true. A lot of investors are sitting on the sidelines, refusing to enter the market. Hopefully, June should bring a flurry of activity.
Some good news on the US front though and it should give the local market some momentum. Wall Street shows a mini revival after a long weekend as stocks rallied on Tuesday amid falling oil prices and a stronger dollar. U.S. light crude oil for July delivery fell $3.34 to settle at $128.85 a barrel, as a stronger greenback makes dollar-traded commodities like oil more expensive for international buyers.
April new-home sales rose 3.3% from the previous month but national home price index slumped 14.1% in the first quarter. A lot of bad news in the real estate market have already been factored into the prices, so not much worry there.
Nasdaq was also given a boost by strong showing from big tech stocks such as Google, Oracle and Apple. Investors are confident in Apple shares with their June launch of the new version of its iPhone.
ST Index rises slightly to 3115.35 by 12.05 points but trading volume is only 1.14 billion. Winners/Losers stands at 279/260.
SGX has fallen very nicely over the last few days and there are buyers hoping to earn a quick buck by getting in at this level. A spike in trading volume in June will likely spur the counter even higher and offers some profit. Gen Int is another active stock. Construction work is on track for its soft launch in early 2010 and investment issues are behind the group.