1. Jardine C&C +0.770
2. JMH 400US$ +0.150
3. SembCorp +0.020
4. ComfortDelGro +0.010
The top 5 loser component stocks were :-
1. CityDev -0.840
2. DBS -0.470
3. JSH 500US$ -0.390
4. F&N -0.380
5. UOB -0.300
US markets closed mixed yesterday with DJ and S&P recorded another gain while Nasdaq was slightly negative. Initially, European markets were on the positive until German official shot down speculation of combination 2 rescue funds and sent European markets to the red. However, US markets managed to recover from that drop to posted gain. Asian bourses after yesterday rally were undergo profit taking ahead of the EU Summit with Nikkei closed -0.66%, SSE -0.12% and HSI -0.69%. STI was the unlucky of the regional bourses all thanks to Singapore Government announcing new property measures yesterday night and STI was weighed down by property stocks without any doubt. STI closed -1.95% with only 4 of the 30 index stocks registered positive closing. Property and banking stocks were the one dragged down STI with CityDev, Capitaland and F&N closed -8.38%, -7.28% and -5.90% respectively. What appeared illogical along with the residential property curb was Reits with no exposure to residential property also fell without rational reason. The panic selling definitely was seen in Reits.
Investors will be looking at tonight ECB meeting to decide on interest rate with most expected another 25 basis point cut and yesterday ECB official said ECB will announce additional measure to stimulate bank lending and if so, that will be another positive step towards resolving the EU debt crisis. A note also that, ECB is not allow to print money so that option is definitely ruled out. Next will be the EU Summit on 9th Dec, a make or break or do or die meeting for the EU. What expected to be announced in the Summit will be the technical detail of EFSF leverage and the fiscal union through treaty changes proposed by Germany and France.
Meanwhile back to Singapore regarding the latest property curbing measures, analysts are expecting this could be the last curbing measures by Singapore Government and with this measures property developers' revenue could take a hit in the next 12 months and projected of possible 20% downside in the share price. While it might not be the right time to bottom fish property stocks but that should be put into radar to bottom fish should this measure be the last already.
