FTSE STI closed 3,300.42, down 25.49 points or -0.77% with a total volume of 1.11b and a total value of S$867M. Total number of advance vs decline was 180 vs 241. Of the 30 component index stocks, 9 closed positive, 2 unchanged and 19 in the red. The top 5 gainer component stocks were :-
1. SIA +0.060
2. CityDev +0.040
3. Ascendas Reit +0.020
4. CapitaMall +0.010
5. Kep Corp +0.010
5. StarHub +0.010
5. ST Engg +0.010
5. UOB +0.010
The top 5 loser component stocks were :-
1. Jardine C&C -0.730
2. JSH USD -0.410
3. HongkongLand USD -0.210
4. DBS -0.200
5. JMH USD -0.110
US markets closed with a gain of at least 0.1% and Asian bourses however were all in a sea of red with Nikkei -1.13%, SSE -3.66% and HSI -0.22%. STI fell 0.77% in thinner volume and value than yesterday with only 9 of the 30 index stocks posted gain.
No surprise from US Fed FOMC meeting in which interest rate remained unchanged for the time being and as usual, fall short of stating when it will start to hike rate. However, something worth noting was US Fed Chairman stressed it is not when the first rate hike that matter but rather the pace of the subsequent. US Fed remained status quo about correlating normalization of interest rate with US economy status. For Asia markets, it was not about US Fed FOMC meeting outcome but rather the case of Greece as clock ticks towards the worst scenario of default and euro exit. Tonight EU Finance Minsters will meet to discuss on the Greece issue. Greece default and euro exit might not be the worst for all parties and could be better for them in the long run.
STI practically gave back all the gain from yesterday as profit taking and selling off of blue chips weighed down the index. Broader market was relatively muted as investors and traders were awaiting for outcome of the Greece issue. Knee-jerk reaction will be a bargain hunting opportunity should there is no resolution in tonight EU Finance Minsters meeting. As a whole, it is time to start slowly accumulate those fundamental strong and high yield stocks.
