1. JSH 500 US$ +0.680
2. Jardine C&C +0.650
3. CityDev +0.390
4. UOB +0.390
5. JMH 400US$ +0.210
The 2 loser component stocks were :-
1. GLP -0.020
2. StarHub -0.010
US markets rebounded yesterday with at least 1%, pretty much on oversold technical rebound. Asian bourses also followed after last weeks of intense selling down. Nikkei closed +1.10%, SSE +1.06% and HSI +0.62%. STI rose 1.20% in a heavy volume of more than 2 billion but total value came in like S$1.12b only and 27 of the 30 index stocks managed to register positive closing.
It was a technical oversold rebound for global stock markets after past weeks of intense selling down. Nothing much has changed for the currently focus issue ( EU debt crisis ). There will be a EU leaders dinner on 23rd May before the official EU Summit in end June. Investors are hoping of something might pop up tomorrow. Without being over optimistic, the minimum expectation for tomorrow EU leaders meeting is all EU leaders must come to consensus that there is an urgent need to stimulate growth in Europe and at the same time still maintain the austerity measures to cut the high debt level. Any policies or measures that cater that should be tailored out in the EU Summit in end June. This is the starting point for the game changer to EU saga.
STI was having a higher volume for today with mainly due to short-covering. Any attempt to chase the market especially for the short-term players will have to be cautious. Any high hope for tomorrow outcome of EU leaders' dinner should not be expecting too much as this is not the official EU Summit in which leaders propose measures and policies to tackle problem.
Watch out for game changers in June and look at fundamental of the stocks and not the overall market trend. It has proven over times and times that when markets become over panic, most people will be wrong and miss the opportunity.
