FTSE STI closed 3,179.71, up 9.80 points or +0.31% with a total volume of 2.95b and a total value of S$1.05b. Total number of advance vs decline was 256 vs 197. Of the 30 component index stocks, 20 closed positive, 2 unchanged and 8 in the red. The top 5 gainer component stocks were :-
1. Jardine C&C +1.000
2. JMH 400US$ +0.410
3. CityDev +0.250
4. DBS +0.100
5. Kep Corp +0.080
The top 5 loser component stocks were :-
1. StarHub -0.040
2. Wilmar -0.030
3. SingTel -0.020
4. NobleGrp -0.020
5. SPH -0.010
5. OCBC -0.010
US markets rallied at least 2% yesterday night after some positive development from US lawmakers. Asian bourses taking the cue rose average 1% for the day with Nikkei +1.48%, SSE +1.70% and HSI +1.16%. STI rose 4th day in a row with a 0.31% gain in thin volume and value day. 20 of the 30 index stocks posted gain.
The Republican which controlled the House yesterday proposed a short-term extension of 6 week for the US debt ceiling and looking to reopen the partial shutdown of the Government in a form of compromise so that they could restart the negotiation with President Obama in resolving the gridlock issue. That piece of positive development cheered the markets, pleasing investors but nothing is confirmed yet and a short-term deal is just kicking the can down the road in which 6 weeks later if no resolution US will again face with default. A event that temporary brought some relief to global markets but it is not the time to get overly optimistic as nothing in black and white is being done yet.
STI in line with regional bourses stayed positive for the day and it was the 4th day of gain in a row. However, the thin volume and value indicating majority still sideline for the time being as nothing black and white is done by the US lawmakers in resolving the shutdown and debt ceiling. STI will start the earning season today with SPH the first blue chip to announce its result after closing bell. For past days and weeks market has been dominated by news from US and largely ignoring the earning season, it is time to switch the focus back to corporate earning.
