1. Jardine C&C +0.260
2. CityDev +0.160
3. KepCorp +0.160
4. DBS +0.120
5. SembCorp +0.060
The top 5 loser component stocks were :-
1. JSH 500US$ -0.230
2. UOB -0.190
3. F&N -0.140
4. HKLand US$ -0.050
5. Wilmar -0.040
5. Capitaland -0.040
US markets closed on average +0.50% yesterday night in a session seeing market swing from positive to negative and back to negative tracking US Fed's chief testimonial. Asian bourses were mixed for the day with Nikkei closed -0.32%, SSE +0.37% and HSI -1.11%. STI swinging between positive and negative closed flat with a +0.08% in a moderate volume day. 19 of the 30 index stocks managed to register positive closing.
Fed Chief's testimonial in general painted a bearish picture on US economy and at all time insisted on US Fed will be ready to act should it be required. There wasn't any direct hint or indicator that it will launch QE3 soonest. As such, US markets sank to red after hearing that but soon recovered to positive after the same old story that Fed will be ready to act if required. Perhaps the view of US economy is getting worse and that will force US Fed to act that gave investors hope and buying up the market. Other than that, nothing really worth noting. US corporate continued to show resilient earning yesterday night.
STI backing with resilient earning in particular those S-Reits ( K-Reit, A-Reit and CapitaMall Trust ) attracted buying whenever market was sold down. It was a scenario whereby traders and investors took profit after prices ran up but the resilient in the price level attracted the seller back to buy back again. Short-sellers who shorted the market and couldn't get it lower were also force to cover back thereby causing the price level to be more resilient. Should this situation persists, STI might have couple of breakout coming along the way. However, should some unexpected bad news surfaced and that would cause panic selling and market dropping to the downside. Without speculating on what will happen, advise is to stick to fundamental and focus on those fundamentally strong stocks. Prices might have jacked up but selectively still cheap. S-Reit in particular has been very strong performer for past weeks as fund mangers snapping up to lock in the high yield to combat the globally low interest rate environment. The dividend yield might be lowered by at least 0.5% as compared with mid-June but still attractive and creating some short-term upside for it. Note watch the yield level before jumping in as the yield could drop another 0.50% before the S-Reits are deemed to be expensive.
