1. Jardine C&C +0.450
2. KepCorp +0.390
3. UOB +0.240
4. SembMar +0.210
5. CityDev +0.170
The 3 loser component stocks were :-
1. JSH 500US$ -0.480
2. JMH 400US$ -0.080
3. SIA Engg -0.020
US markets closed positive last night ahead of earning season and some progress being made in the EU debt issue after German and French leaders meeting. Aloca reported quarterly loss after market closed but meet expectation and Germany in support of French's proposal of financial tax, further setting rules on the deficit cut ahead of schedule for the coming end of the month EU Summit. Though the meeting did not produce something to resolve the crsis overnight but it was another small positive step to resolve the issue. Asian bourses were boost on news of Aloca's earning, EU step in resolving the crisis and also China potentially easing of monetary policy to boost growth. Nikkei closed +0.38%, SSE +2.69% ( second consecutive day of rising more than 2% ) and HSI +0.73%. STI in line with regional bourses rose 1.06% after yesterday more than 1% pull back as investors are gearing up towards earning season. Offshore/Marine and Property stocks were the gainer that pushed STI up with 25 of the 30 index stocks closing positive. Blue chips enjoying some buy on dip support ahead of the earning season.
For the coming earning season, most will expect companies' profit for the last quarter being shrink due to the EU debt crisis but the question is whether they perform worse or better than expectation. Furthermore, the outlook from companies' CEO will be critical in guiding STI direction. There will be another event in February in which investors should be looked out for. Singapore Budget day in mid-February. Singapore Government has projected a slow growth of +1% to +3% for 2012 and Singapore Government will not be irresponsible to sit one side and watch the growth to slow to that rate and hoping eventually EU debt crisis get resolved and everything will be back to normal. Investors should look out for any pro company measures during the Budget as the Government comes in to support the country economy.
A final note is that earning season for the moment is not whether company register profit or loss but rather with an expectation of lower profit, can the company still meet market's expectation and what is the outlook for this company for the rest of the year.
