FTSE STI closed 3,128.75, down 44.58 points or -1.40% with a total volume of 3.08b and a total value of S$1.65b. Total number of advance vs decline was 88 vs 397. Of the 30 component index stocks, none closed positive, 3 unchanged and 27 in the red. The top 5 loser component stocks were :-
1. Jardine C&C -1.670
2. JSH 500US$ -0.460
3. UOB -0.430
4. DBS -0.270
5. CityDev -0.240
US markets fell for 4 days in a row due to the as usual reason. Asian bourses were mostly lower for the day with Nikkei -2.63%, SSE -0.62% and HSI -2.20%. STI in line with regional bourses fell 1.40% volume slightly higher than past days without any index stocks registered positive closing.
It was the case of sell before too late to book gain for funds. 4 months to end of the year and with losses from bond markets, it only left to stock markets to sell to book gain for their portfolio before the gain erode away. Other than that, it was not due to fundamental reason.
STI probably the last destination in Asia for funds to exit and in doing so, market will be hitting the bottom from now till mid September follows by the rebound due to fundamental reason regardless of whether there will be tapering or not. With the funds selling, price level starting to get more and more attractive and long-term investors should start to slowly accumulate.
