1. SIA +0.090
2. CapitaMall +0.025
3. ComfortDelGro +0.005
The top 5 loser component stocks were :-
1. Jardine C&C -1.340
2. JSH 500US$ -1.250
3. JMH 400US$ -0.680
4. UOB -0.440
5. DBS -0.250
US markets closed down at least 1% yesterday night as concern of EU debt crisis was again in spotlight. Investors were worried that the treaty proposal in last week EU Summit will not solve the debt issue and US economy as indicated by US Fed that will be hit by EU debt crisis should it not resolve. In addition, investors also put off with US Fed that it did not signal possibility of stimulus program in the Tuesday FOMC meeting. Asian bourses taking the cue were in the red for the day. Nikkei closed -1.66%, SSE -2.14% and HSI -1.78%. STI fell 1.39% in a very thin volume day with only 3 of the 30 index stocks managed to close positive.
While the fact is that EU crisis will not solve overnight in which investors knew off and what markets want is resolving the crisis by printing money. To resolve to printing money to solve the debt crisis no doubt in short-tern can contain the crisis but it is never a good long-term plan. That what we have been seeing in US after 2 rounds of QE and nothing has changed. As a whole investors should have confident in EU leaders in their way to resolve the crisis by austerity measures and treaty change. That will take a pro-long period to resolve but in the longer time frame, it is a better solution than printing money. As such, the selling down maybe due to panic selling at a point has become irrational and illogical.
