FTSE STI closed 3,191.08, up 24.34 points or +0.77% with a total volume of 1.96b and a total value of S$1.02b. Total number of advance vs decline was 228 vs 204. Of the 30 component index stocks, 22 closed positive, 3 unchanged and 5 in the red. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.510
2. JMH 400US$ +0.400
3. UOB +0.250
4. Jardine C&C +0.150
5. DBS +0.140
The 5 loser component stocks were :-
1. StarHub -0.040
2. ST Engg -0.020
3. HPH Trust US$ -0.020
4. NobleGrp -0.005
5. Genting SP -0.005
US markets rebounded yesterday with both S&P500 and DJ hitting record high. Asian bourses taking the cue also rebounded from yesterday selling down. Nikkei +2.12%, SSE +0.60% and HSI +0.82%. STI in line with regional bourses closed +0.77% but with slightly higher volume and value than yesterday. 22 of the 30 index stocks posted gain.
The very dovish comment from the next US Fed Chairman Janet Yellen sort of calm nervous investors of possible sooner than expected US Fed tapering, triggering a global rebound in the stock markets. Japan released its 3Q GDP coming in better than expected of +1.9% annualized. Investors also starting to realize the no-show China reform meeting which ended Tuesday is after all not that negative.
STI did a rebound from yesterday selling and though the volume was slightly higher but that could be due to short-covering from yesterday short. Short-term investors no doubt are taking the rebound to exit and hence putting resistance at the price level. Need to ignore the short-term views, taking those short-term events like US Fed tapering as noise and really focus on the fundamental and valuation. For every panic there will present with a good bargain hunting opportunity for long-term investors.
