1. ComfortDelGro +0.005
The top 5 loser component stocks were :-
1. Jardine C&C -1.510
2. JMH 400US$ -1.170
3. JSH 500US$ -0.620
4. DBS -0.380
5. UOB -0.260
US markets fell at least 1% yesterday night as continue concern of European debt crisis and the 23rd Nov deadline for the US super committee to resolve the debt reduction plan weighed on positive economic data. Asian bourses took the cue also on a down day. Nikkei closed -1.23%, SSE -1.89% and HSI -1.73%. STI fell 1.72% ahead of the weekend with 27 of the 30 index stocks closed negative. Defensive stocks like S-Reits also faced with selling pressure for past days, and could be funds switching out of those stocks. The reason for that yet to be know and have to determine by whether there is any fund outflow for the week.
The European debt crisis hit another road block when France and German were split on the role of ECB in rescuing the EU debt crisis when cost of borrowing from Italy, Spain to France all rose. Investors were definitely getting impatience for the lack of following up after last month small positive step in resolving the crisis. Investors are looking at the technical detail in particular the EFSF in providing a firewall around EU countries over the debt issue. Question on where and how the fund come from is definitely what investors eager to know of. In addition, the US super committee tasks to come out a plan to reduce US debt has not show any constructive action with 23rd Nov being the deadline. The market correction following August deficit deadlock leading to US rating downgraded still fresh in investors mind and fear of another similar scenario coming to 23rd Nov. With earning season comes to a close, these 2 issues definitely occupy the spotlight for the time being.
China on the other hand, might be facing a property bubble burst scenario as home prices continued to fell in majority of the cities. Short-term wise might be bad for China but that definitely is the way to bring down its inflation to the 4% target so that China Government will be free to roll out stimulus package to spur its economic growth.
