1. JMH 400US$ +0.840
2. JSH 500US$ +0.410
3. UOB +0.360
4. Jardine C&C +0.260
5. SGX +0.050
The top 5 loser component stocks were :-
1. DBS -0.390
2. F&N -0.100
3. CityDev -0.100
4. SIA -0.060
5. SembMar -0.040
US markets closed at least +0.4% yesterday night after a better than expected ISM data offsetting news from Europe that its manufacturing contracted for the eighth month. The better than expected China PMI over the weekend also provided some boost to the markets. Asian bourses were mixed for the day with Nikkei closed -0.59%, SSE still close for holiday and HSI +1.31%. STI failed to hold on to positive position and closed -0.04% in another day of heavy volume of more than 2 billion but the total value came in S$1.46b only indicating penny stocks play. Of the 30 index stocks, only 13 managed to close positive and the index stock with the biggest drop on the day was DBS after news of its acquisition of Danamon in which investors felt it was an expensive acquisition.
With Europe and US future indicating directionless again and biased towards the downside, last minute selling down as investors locked in profit caused STI to end in the red.
For investors trading on the penny stocks, advise to be extremely cautious as the momentum could suddenly stop and will get caught. Focusing on the fundamentally strong stocks and lookout for opportunity to buy on dip would be a better strategy.
