1. JSH 500US$ +0.170
2. KepCorp +0.160
3. SembCorp +0.090
4. F&N +0.070
5. DBS +0.060
The top 5 loser component stocks were :-
1. Jardine C&C -0.800
2. JMH 400US$ -0.420
3. UOB -0.220
4. ST Engg -0.040
5. SGX -0.040
5. CityDev -0.040
US markets closed mixed yesterday night with financial and tech stocks pushing the index to positive region after better than expected economic data in ADP, jobless claims and non-ISM offset worries over EU debt issue. Asian bourses were mixed for the day with Nikkei closed -1.16%, SSE +0.70% and HSI -1.17%. STI was mostly flattish for the day and managed to inch up a +0.09% closing in a very thin volume day of less than 1 billion. Investors in general were cautious ahead of tonight US employment data. With the better than expected ADP number, most expecting US employment situation continue to improve and if it does it is nothing of a surprise. Note also the ADP figure could be skewed as December period tend to have temporary hiring for the festive season. Also even with US unemployment rate coming down, the figure still consider high and definitely in need to some Government policy to create massive amount of job else the recovery will be slow and ineffective.
The thin volume which caused index to move up also need to be cautious of. There was some last minute buying up of the STI index stocks could be due to short-covering which result in STI managed to close in positive region. The underlying problem in EU still there and will have to wait till EU leaders to come out another small little positive steps to improve on the situation. Meanwhile US economic data recently have been pointing to the good side and that caused analysts to think of possible US economy is able to de-link or cushion and impact from EU debt crisis. That is too early to have a conclusion on that. The improving US economic data could be the effect of US Fed's Operation Twist which was launched in September 2011. From the past 2 QE, after the expiry of the stimulus, US economy crumbles again.
Investors are best not to be over optimistic about the global economies and also should not be over pessimistic too as the current problem has put global leaders on alert of global systemic risk and when emergency does appear, somehow, a solution will pop up. In general, global markets still in range bound mode.
Singapore will commence earning season in about 1 week time and couple of blue chips will be releasing their full year earning ( with potentially declaration of final dividend ) and investors should focus on these companies.
