1. Jardine C&C +1.090
2. UOB +0.530
3. CityDev +0.490
4. DBS +0.410
5. KepCorp +0.300
The 2 loser component stocks were :-
1. F&N -0.070
2. SPH -0.010
US markets rallied at least 4% yesterday night with better than expected economic data like ADP and industrial production. However, the move for the day was China surprised cut of reserve ratio for banks by 50 basis point and 6 central banks co-ordinated effort to lower the USD swap line by 50 basis point and extend that to 2013 to provide extra liquidity to the financial market to combat the credit crunch caused by the EU debt crisis. That has forced lot of short-covering to drive up the index. Asian bourses also rallied with Nikkei closed +1.93%, SSE +2.29% (after a report of Nov PMI of 49%, first contraction and probably that why China made the reserve ratio cut yesterday ) and HSI +5.63%. STI in line with regional bourses rose 2.20% with 27 of the 30 index stocks registered positive closing. The buy up was board based but volume was on a moderate level. Short-covering contributed part of the rally and investors still remain cautious despite the effort by the central banks. Investors will be questioning whether the rally can sustain as we still have long way to totally resolve the EU debt crisis. Nevertheless, every little steps count to resolve the debt crisis. European markets were traded in negative region after yesterday rallied ahead of Spain and France bond sales. Furthermore, investors will also have an eye on this Friday US employment situation.
A positive start for STI for the last month of 2011. Do expect some profit-taking in coming session.
