Market Summary -- 5th Aug 11

FTSE STI closed 2,994.78, down 112.23 points or -3.61% with a total volume of 2.81b and a total value of S$2.90b.  Total number of advance vs decline was 59 vs 650.  Of the 30 component index stocks, all closed in the red.  The top 5 loser component stocks were :-

1. Jardine C&C  -3.080

2. JSH 500US$  -0.840

3. UOB  -0.800

4. DBS  -0.600

5. KepCorp  -0.440

US markets fell at least 4% yesterday night when concern of US recession and European debt hit the sentiment for investors.  Asian bourses also followed the sharp sell off with Nikkei closed -3.72%, SSE -2.15% and HSI -4.29%.  STI with all the 30 index stocks closing in the red fell 3.61% in high volume as investors cashing out.  Tonight will be US unemployment data.  A bad figure could signify 2 possible scenarios.  First scenario being US economy is facing possibility of entering recession while second scenario being US Fed might have to push out another stimulus program soonest to prevent US economy from entering recession.  STI closed below the 3,000 level and could be dropping some more to re-test the 2,920 level in March 2011 during the Japan natural disaster.  Some key index levels to note are :-

1.  2,700  Singapore entering technical recession
2.  2,400 Singapore entering recession