1. StarHub +0.020
2. GLP +0.015
The top 5 loser component stocks were :-
1. JSH 500US$ -0.520
2. UOB -0.470
3. Jardine C&C -0.410
4. CityDev -0.280
5. OCBC -0.190
US markets gave up earlier gain and closed mixed and flat with DJ and Nasdaq in the red while S&P500 just edged out slight gain. It was nothing more than Greece's exit out Euro issue again. Asian bourses were all in the red for the day. Nikkei closed -1.98%, SSE -0.42% and HSI -1.33%. STI fell 1.53% giving up all of yesterday gain with only 2 index stocks registered positive closing but volume was much lower than yesterday and total value came in below S$1b.
Comment from Greece's previous PM citing out Greece possible out of Euro spooked the global markets. For a record, this is the 3rd year in a row that global markets were focus on Greece. Investors focus on the wrong issue !!!. Tonight EU leaders will be meeting for dinner session ahead of next month official EU Summit. While not expecting major policies or measures being proposed, the minimum expectation is EU leaders in consensus agreeing on EU nations meet to stimulate growth and how to draw a balance between continuity of austerity measures to cut the deep debt and at the same time provide measures to stimulate economic growth. At this junction of time, still having division is not helping to resolve the EU debt crisis. Another issue well probably that will not be publish openly is contingency plan for Greece's exit of Euro. Not publicly announce is to prevent fear but having a contingency plan is the right way to prevent chaotic should the situation really happens. These are the 2 issues EU leaders should be looking into during tonight dinners and having consensus about.
Singapore this afternoon reported April CPI came in +5.4% slightly above the +5.3% expectation and March's +5.2%. The persistent high inflation has drawn fire from the nation into debating on rising wages of workers to combat inflation. The existing measures in which MAS strengthen SGD might be losing its effect. With high inflation still in Singapore and very low interest rate from banks, investors should be considering methods to hedge against inflation. Common method is none other than investing in high yield stocks like Reits and some of the defensive stocks.
As usual, investors should focus on the fundamental of the stocks and watch out for game changers in the EU saga in June. The austerity vs growth issue !!!
