FTSE STI closed 3,196.07, down 10.52 points or -0.33% with a total volume of 3.92b and a total value of S$1.65b. Total number of advance vs decline was 140 vs 329. Of the 30 component index stocks, 9 closed positive, 5 unchanged and 16 closed negative. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.290
2. UOB +0.180
3. Wilmar +0.080
4. SGX +0.050
5. F&N +0.020
5. Olam +0.020
5. HKLand US$ +0.020
The top 5 loser component stocks were :-
1. JMH 400US$ -0.850
2. CityDev -0.320
3. KepCorp -0.240
4. Jardine C&C -0.160
5. SembMar -0.070
US markets closed mixed with DJ in positive while Nasdaq and S&P500 both in the red dragging down by Apple. Asian bourses were mixed for the day with Nikkei +0.72%, SSE +0.60% and HSI -0.14%. STI fell 0.33% in thinner volume, hitting below the 4 billion level. Only 9 of the 30 index stocks managed to register positive closing.
Apple fell yesterday after a cut in iPhone 5 volume sale dragging down most of US index as investors awaiting for the big financial banks earning to be out this week. The debt ceiling starting to in focus with President Obama making clear a refusal to negotiate debt ceiling and US Fed Chief warning of disastrous if debt ceiling is not raised. A big question for investors would be : If US manages to raise the debt ceiling (the 2nd time) does it means US fundamental has turned good ? A higher debt ceiling can equate to higher borrowing for US in the future also and that may not turn out to be good in the long run with mountain of debts. Raising of debt ceiling is a short-term measures to prevent US default only, the very much solution is till for US Government to reform on spending cut, probably in method of austerity like those in EU nations. Without doing that, very soon US economy could be back to recession in no time.
Asian shares were mixed with Nikkei advanced on weak Yen and China continued the rally due to remark on possible increase in foreign investment quota in Chinese equity yesterday. The rest of the regional bourses were subjected to profit taking. STI continued to be drag down by property stocks due to the latest cooling measures.
Singapore started corporate earning yesterday with SPH being the first blue chip announcing a flat set of earning and Ascendasreit, the first REIT this morning with a firm set of result. In general S-Reits earning should be firmed but for rest of the sector will be difficult to judge at the movement. Hence, for investors targeting for earning play have to be careful.
