FTSE STI close 3,004.18, down 29.84 points or -0.98% with a total volume of 3.05b and a total value of S$1.54b. Total number of advance vs decline was 114 vs 373. Of the 30 component index stocks, 3 closed positive and 27 in the red. The 3 gainer component stocks were :-
1. ST Engg +0.030
2. Wilmar +0.020
3. StarHub +0.010
The top 5 loser component stocks were :-
1. Jardine C&C -0.440
2. JMH 400US$ -0.250
3. CityDev -0.220
4. HKLand US$ -0.180
5. DBS -0.150
US markets fell at least 1% yesterday and Asian markets were all in the red for the day. Nikkei -1.51%, SSE -0.11% and HSI -1.60%. STI continued the drop with another 0.98% with only 3 of the 30 index stocks edged out a gain.
This time round was the concern of Syria conflict that triggered the global selling as US is preparing to air strike on the Syria's rebel with suspect of chemical weapons. That caused crude oil price to jump, a Middle East crisis as in 2011. There was another news which probably being overshadowed by US Fed tapering fear and Syria issue at the moment and that is the US debt ceiling in which the Federal Reserve will hit the debt limit in mid October and if nothing is to be done to the debt ceiling, a default will happen. The debt ceiling is not something new, it was an issue since 2011 and nothing was done except kicking the can down the road to buy sometime and upping the limit. If the limit is so easily being raised, what is the point of having a debt ceiling in the first place ? That is the main issue in which investors in general should avoid US stocks despite so many talks that should US Fed taper, money should flow back to developed nation like US. The fundamental of US is just so bad as relative to Asia.
STI is having a Great Singapore Sales again today with the usual reason of fear of US Fed tapering, money outflow, repeat of 97 Asian financial crisis, Syria crisis, etc, etc. Other than that nothing new. STI is now struggling around the 3,000 level which many monitor. DO NOT, DO NOT look at STI value to decide when to buy but instead look at individual stocks.
