1. JMH 400US$ +0.730
2. JSH 500US$ +0.430
3. SIA Engg +0.030
4. KepCorp +0.020
The top 5 loser component stocks were :-
1. Jardine C&C -0.600
2. CityDev -0.240
3. StarHub -0.110
4. SIA -0.080
5. DBS -0.080
US markets closed in the red again but recovered from low within the last hour of trading. Asian bourses mostly in the red with Nikkei closed -1.48%, SSE +0.46% and HSI -2.03%. STI fared slightly better than regional bourses with a 0.58% drop in another day of volume exceeding 2 billion. However, only 4 of the 30 index stocks managed to register positive closing.
Concern of global slow economic growth ahead of tomorrow China GDP coupled with yesterday night Fed's June minute indicating Fed is inclined to more monetary easing only if condition worsen caused global markets on a sell down. Profit taking more like it as global slow economic growth and US Fed decision on easing are nothing new. An interesting sight was after the released of Fed's minute, US markets sold down. For those who are very much in flavor of QE, shouldn't that be good news as US Fed is inclined to more easing. However, investors were panic by the word "worsen" in fear of the so-called fiscal cliff of US economy. Now question should be asked, if one expects QE then the condition must be so bad in order to have QE if not having QE for what ? To summarize, investors couldn't make up their mind what they want. They want QE but don't want the economy to be worsen. If so, no point focus on US market as practically "waste of time".
Singapore will be releasing its 2Q GDP tomorrow when SPH also starting the earning season. Blue chips are starting to pulling back while investors shifted their focus to the penny stocks play. Might have some periods for penny stocks play but be careful don't get caught at the wrong end. Stay focus on the blue chips and fundamentally sound stocks is still the safest.
