FTSE STI closed 3,175.52, up 16.95 points or +0.54% with a total volume of 2.01b and a total value of S$1.18b. Total number of advance vs decline was 177 vs 187. Of the 30 component index stocks, 15 closed positive, 6 unchanged and 9 closed negative. The top 5 gainer component stocks were :-
1. JMH 400US$ +1.180
2. UOB +0.170
3. HKLand US$ +0.120
4. Wilmar +0.100
5. Capitaland +0.080
5. DBS +0.080
The top 5 loser component stocks were :-
1. Jardine C&C -0.300
2. CityDev -0.060
3. StarHub -0.040
4. GLP -0.040
5. KepCorp -0.030
5. JSH 500US$ -0.030
5. F&N -0.030
US markets closed negative yesterday giving up all of earlier gain due to fear of no deal on the fiscal cliff. Asian bourses were mixed for the day with Nikkei -1.19%, SSE +0.28% and HSI +0.16%. STI closed at new 52-week high with a gain of 0.54% in heavy volume but thin value. 15 of the 30 index stocks posted gain.
White House's comment of no fiscal cliff deal sent investors selling down on US markets yesterday as Republicans instead of trying to further compromise Obama latest offer decide to go ahead a vote on Plan B (only raise tax for the rich with more than US$1m income) today and Obama threatens to veto that bill even if it passes the House today (should be able to pass as majority of the House is Republicans). This event show nothing but politicians once again putting party interest ahead of the nation. There is no point of having a deal because it needs one but the detail lack the quality and substance to avoid the fiscal cliff in the long-term.
STI on second day in a row managed to close positive but with number of declines led number of advances creating nothing but a divergence sign. Tomorrow is quadruple witching day and that could be the possible accounting for the strength STI was showing today. As most of Asian bourses were showing muted effect on the potential no deal on the fiscal cliff, there is a high chance that even if there is a deal eventually, markets can sell down due to sell on news.
