FTSE STI closed 3,163.56, down 11.96 points or -0.38% with a total volume of 1.42b and a total value of S$1.07b. Total number of advance vs decline was 143 vs 235. Of the 30 component index stocks, 8 closed positive and 22 closed negative. The top 5 gainer component stocks were :-
1. JMH 400US$ +0.760
2. JSH 500US$ +0.100
3. F&N +0.070
4. SingTel +0.030
5. IHH +0.025
The top 5 loser component stocks were :-
1. Jardine C&C -0.150
2. HKLand US$ -0.140
3. UOB -0.110
4. OCBC -0.100
5. DBS -0.090
US markets closed positive after better than expected 3Q GDP coming in at +3.1%. Asian bourses were sent to the red after the Republican Plan B vote was called off. Nikkei -0.99%, SSE -0.69% and HSI -0.68%. STI fell 0.38% in thin volume and value with only 8 of the index stocks managed to register positive closing.
The Plan B proposed by Republicans was supposed to get voted in the House this morning was last minute called off as they couldn't get enough support to pass that. With a result of that, that could mean US Congress will not have the fiscal cliff deal done before Christmas. The news sent US future crashing more than 1% and sentiment in Asian bourses were nothing but sell. As usual, the gridlock by politicians playing political games. Republicans asking for US$1m cap while Obama rejected that and raised his initial offer from US$250k to US$400k and Republicans did not want to agree on. Is that so difficult to compromise ? Each one take a step back and make it US$500k ? 2 adults behaving like 3 years old. Ain't politicians suppose to put nation interest ahead of party ? Look like they do not have the heart to be a politician.
STI sudden shrank in volume as investors not willing to take position ahead of the Christmas holiday and also being cautious of what's next on the fiscal cliff. Some analysts have called for a correction coming in STI. Should it really a correction, it will be the great time to bargain hunt on any panic sell. Focus on the individual stock and the price willing to buy and not use STI as a reference to determine when to buy.
