1. StarHub +0.020
The top 5 loser index stocks were :-
1. Jardine C&C -1.230
2. JMH 400US$ -0.820
3. JSH 500US$ -0.400
4. CityDev -0.220
5. UOB -0.180
US markets fell at least 1.6% yesterday night as concern of Spain's debt weighed on against lacking of positive news. After market closed, Alcoa reported a quarterly gain in earning when expectation was a loss. Asian bourses taking the cue on the slide in US markets mostly traded in negative region. Nikkei closed -0.83%, SSE +0.13% and HSI -1.06%. STI gave back yesterday gain and was the worst among regional bourses with a 1.21% drop with only 1 of the index stock managed to register positive closing. Daily volume was heavy at more than 3 billion while daily value only came in S$1.2b.
To put in bluntly, the drop in US markets is DESERVED as investors and analysts have been over hype for the past months regarding US economy which pushed the index to a value that is over run the fundamental. US a nation with a huge debt and required lawmakers to hike the debt ceiling. Furthermore, the failure of the lawmakers to create jobs and instead heavily rely on US Fed with its stimulus program to save the economy. With all those issues, the underlying of US economy does not warrant the US stock markets to be traded at such a high valuation. Spain's debt issue is not something new as after the Greece's 2nd bailout speculation of it already surfaced. Against the lack of fresh positive news, the old issue just resurfaced and investors in particular funds taking that as an excuse to sell down the market. On the other hand, Asian bourses though with slow economy growth, have a much better fundamental than US and Europe. The massive selling down just because there is a big drop in US markets can never be logical, rational and logical. For Asian markets, be greedy when others are fearful.
