1. Jardine C&C +2.000
2. JMH 400US$ +1.480
3. JSH 500US$ +0.930
4. UOB +0.560
5. CityDev +0.500
The 2 loser component stocks were :-
1. SPH -0.050
2. CapitaMall -0.015
US markets continued to move up with average at least +1.5% closing after a better than expected ADP job data and non-ISM Service data. Also concern of EU debt eased with news of ECB and EU leaders will take action to recapitalize the banks in the event of Greece default. Investors also anticipating ECB to take action tonight in its meeting of speculating an interest rate cut and also bond buying program. Asian bourses took the cue also rebound from past days of selling down. Nikkei closed +1.66%, SSE closed for holiday and HSI +5.67% catching up after yesterday closing of market. With past 2 days of US markets advancing, investors in HSI especially the shortists were caught off guard and panic rushing for short covering which result in a sharp rebound from HSI. STI in line with regional bourses rebounded 2.94% with STI moving back above 2,600 level. Short covering and bargain hunting rushing in on the blue chips help pushed the index up. Volume was moderate.
Despite the fact that Greece's debt still uncertain of another bailout funds, investors are now looking at action by ECB and EU leaders to tackle the case of what if Greece default. Furthermore, the recent economic data from US also indicating that US economy is unlikely to go into recession and that has put investors' worries to one side. ECB decision tonight and US unemployment rate tomorrow night will be closely monitor by investors. Investors want action and not just plain talking up of confidence by policy makers. Any moment a "correct" stimulus action can bring back confident of investors and trigger a sharp rebound in global markets like in the case of March 2009. Hence, investors should be closely monitoring the events and news coming out of EU and US to give a direction of the markets. Pure speculation of either further downside or sharp rebound of the stock markets without confirmation of news or data will be a very unwise move now.
