FTSE STI closed 1,745.63, down 49.84 points or 2.78% with a total volume of 736M and a total value of S$690M. Total number of advance vs decline was 163 vs 219. Of the 30 component stocks, 6 closed positive, 23 closed negative and 1 remained unchanged. The top 5 gainer component stocks were :-
1. HKLand US$ +0.160
2. Wilmar +0.070
3. JMH 400US$ +0.060
4. SPH +0.030
5. JSH 500US$ +0.020
The top 5 loser component stocks were :-
1. UOB -0.660
2. DBS -0.480
3. CityDev -0.420
4. Capitaland -0.420
5. SIA -0.400
Most Asia bourses opened flattish in the morning despite news of US automaker bailout deal confirmed by President George Bush. Only Nikkei managed to close positive with +1.58%. HSI suffered selling down in the afternoon and closed down 3.34%. STI in the morning half was quite flalttish but as soon as news of DBS is doing a right issue to raise S$4b, bank stocks were under heavy selling pressure and together with property stocks, they led the fall of STI. DBS is issuing a 1 to 2 right at $5.42/share. That means for every 2 DBS shares own, the shareholder is entitled 1 right which can be subscribed to 1 share at $5.42. The huge amount of funds needed by DBS shocked the market and investors took it as a bearish news and possible UOB and OCBC might following the same thing hence piled the pressure on bank stocks.
