1. Jardine C&C +2.210
2. JMH 400US$ +1.350
3. JSH 500US$ +0.830
4. CityDev +0.550
5. UOB +0.260
The only loser component stock was :-
1. SIA -0.020
US markets closed positive last night with a better than expected non-ISM data and encouragement outcome from the G7 emergency meeting. Asian bourses continued the rebound for day with Nikkei closing +1.81%, SSE -0.10% and HSI +1.43%. STI closed +1.79% with a slightly heavier volume and 28 of the index stocks registered positive closing.
Panic short-covering was to describe today trading activity. Those funds trying to sell of fearing the worst to come was caught off guard by the short-covering and perhaps they might want to think twice whether they want to continue the sell off or not. As expected no major policies were dished out from the emergency G7 meeting but the outcome of that was encouraging, laying ground work for the coming G20 and EU Summit later this month. Furthermore, there will be a ECB meeting on rate tonight. Should ECB decides to cut interest rate from the current 1%, that will trigger the first action taken by EU to tackle the debt crisis and more will be coming along the way. By so, EU nations are telling the rest of the world they are taking concrete action and no more plain talking.
From the past days of selling down, some of the stocks have hit the bottom and rebound of. Some trying to form bottom and another some probably still have some more to drop. Many always have the habit of looking at what STI is to determine the bottom. Unfortunately, it doesn't play out this way. While STI could have some more to drop, some of the stocks would have already hit the bottom and rebound off. As mentioned many times, focus on individual stocks if want to bargain hunt and not use what STI value to serve as reference.
As mentioned since last month, watch out for game changer events this month for market reversal. No, it is not the Greece re-election on 17th Jun. It is some other things and should be happening soon. Also keep in mind end of the month 1H2012 window dressing.
Some of the key events to look out for.
18th - 19th Jun G20 meeting
28th - 29th Jun EU Summit
19th - 20th Jun US FOMC meeting
Watch out for positive development around the above events.
