Quarterly Summary 2Q07 0 comments

2Q07 Summary
First of all, note that the 2Q performance lasted from start of March until 29 Jun, the last trading day of 2Q. I have been one week late in coming up with this review so do not mistake the closing prices as that of last Friday's (6 July already).

It has been a scintillating second quarter. Yet again there is a dramatic rebound from a sharp market downturn, similar to that in May 06. However, it appears that this time the rebound was even quicker and stronger. I estimate that indices were back to new highs within one month of the sharp drop, while it took several months for the market to recover from May 06.

It cannot fail to escape market watchers that small caps in particular have had the most amazing run of any theme/sector in 2Q. Nearly 50% up in 3 months! All thanks to the RTO phenomenon which means calling hotstocksnot is turning out to be particularly hard for me nowadays; if it's cheap it's now good; if it's mid-priced its business is probably decent; if it's expensive it's probably semi-bluechip and hence has too strong fundamentals to collapse. This sort of thinking seems to be market dogma nowadays.

When one looks at this kind of figures, the natural reaction is to anticipate a market correction anytime soon. However, remember we were all waiting for one at the end of 2006. As always, when in doubt, revert to fundamentals to assess the likelihood of a strong rebound in the event of a market correction. A sizeable margin of safety won't do harm either, though it's getting harder to pick those with such qualities.

As in 1Q07, below are the best and worst performing stocks over the quarter. They are arranged first by absolute amount gain/loss, then more relevantly for many, the percentage gains/losses. Note: several stocks appear to have gained/lost massive amounts but this is because of corporate moves like share consolidation, stock splits etc, so be careful (eg. Delong underwent a 1-for-10 consolidation).

Indices

STI	3548.2	316.96	(9.8%)
SESDAQ	262.29	86.76	(49.4%)
SGX Finance Index	2539.52	163.00	(6.9%)
SGX Property Index	1649.84	156.00	(10.4%)
SGX Hotels/Rest Index	1602.54	217.91	(15.7%)
SGX Construction Index	741.81	195.10	(35.7%)
Retail Index	137.50	15.43	(12.6%)
Plastics Index	117.00	29.52	(33.7%)
Env/Water Index	175.69	23.10	(15.1%)
Energy Index	183.43	37.74	(25.9%)
China Index	199.84	34.82	(21.1%)
PP China Index	249.65	42.08	(20.3%)

Stocks Summary

By Absolute Amount

Stocks below $1: Quarter's Top Gainers & Losers














Stocks between $1 to $2: Quarter's Top Gainers & Losers













By Percentage

Stocks below $1: Quarter's Top Gainers & Losers














Stocks between $1 to $2: Quarter-Year's Top Gainers & Losers