1. Jardine C&C +0.200
2. CapitaMall +0.010
The top 5 loser component stocks were :-
1. JMH 400US$ -1.180
2. UOB -0.910
3. DBS -0.690
4. CityDev -0.400
5. KepCorp -0.370
US markets fell at least 2% yesterday night despite a better than expected ISM data as Greece's debt issue weighed heavily on investors in which Greece failed to meet its deficit target ( which might not get the bailout from IMF/ECB if rules were being followed strictly ). Furthermore the EU Finance Ministers meeting yesterday also failed to produce any action to save the EU debt issues. Talk about possible Greece default in which private investors have to take haircut caused panic to the stock markets. Nikkei closed -1.05%, SSE closed for holiday and HSI -3.40%. STI fell 3.45% led by selling off of bank stocks. Funds could be selling off bank stocks to take back cash and prepare for potential write off from Greece debt should haircut is the only option. While US economic data didn't show any sign of recession, global investors are concern of development in EU. Greece default which could be at least 10x the impact of Lehman Brothers collapse and in turn could trigger global recession is currently weighing heavily on investors. EU as concluded yesterday won't take any action until next month. On the other hand, ECB meeting this Thursday might be seeing some action like interest rate cut or doing bond buying or might even be a similar "operation twist". Investors are at the moment speculating on the possible measures ECB could take to salvage the situation in EU.
STI as of now has officially dropped more than 20% from its peak, entering bear market. Should Greece default or partially default, STI could fall to 2400 level. Should recession kicks in, more downside will follow.
