FTSE STI closed 3,167.08, down 24.72 points or -0.77% with a total volume of 1.52b and a total value of S$907M. Total number of advance vs decline was 168 vs 194. Of the 30 component index stocks, 4 closed positive, 2 unchanged and 24 closed negative. The 4 gainer component stocks were :-
1. CityDev +0.040
2. GLP +0.040
3. F&N +0.030
4. StarHub +0.020
The top 5 loser component stocks were :-
1. JMH 400US$ -1.600
2. JSH 500US$ -1.070
3. SIA -0.140
4. Jardine C&C -0.140
5. DBS -0.140
US markets fell average 1% last Friday as no deal on the fiscal cliff. Asian boureses mostly in the red for last day of 2012. Nikkei was closed for holiday, SSE still trading at +1.12% at the moment and HSI closed -0.04%. STI only trade for half-day and closed -0.77% with only 4 of the 30 index stocks managed to register positive closing.
US Congress scheduled a last session on Sunday to try to vote on the fiscal cliff but still could not to vote on. They will try a final effort today to see whether a deal could be made. Should no deal being made even after today, tax hike for all, across the boards spending cut and US debt hitting another debt ceiling will take effect. The tax hike might be able to reverse comes next January when US Congress can pass a bill to low the tax rate for the non-rich. As for spending cut, that might be a bit tricky in negotiating. US debt ceiling will be hit today should nothing be done by the Congress and an emergency mechanism will kick in which could drag the US for another 2 to 3 months before they default. The impact on US default on its debt will have ultimate impact on not only US but rest of the world economy. That is something investors should focus on.
On a bright side, China reported a better than expected December PMI indicating the economy rebound is fruther gaining momentum.
STI finished the last day of 2012 on a down day with concern of the US fiscal cliff issue despite upbeat economic data from China.
