1. JMH 400US$ +0.370
2. F&N +0.320
3. SingTel +0.010
The top 5 loser component stocks were :-
1. Jardine C&C -1.240
2. UOB -0.260
3. DBS -0.240
4. SembCorp -0.230
5. SGX -0.220
5. OCBC -0.220
US markets fell at least 1% last Friday on concern of EU debt crisis resurfaced after Spanish bank in Valencia seek Government bailout, in fear of Spain in need of a full bailout. Asian bourses started the week with not much of a good news and all closed in the red. Nikkei closed -1.86%, SSE -1.26% and HSI -2.99%. STI in line with regional bourses closed -1.10% in moderate volume with only 3 of the 30 index stocks managed to register positive closing.
First it was fear of a full bailout from Spain and next Greece exit of Euro resurfaced as investors are concerned that Greece could not meet the demand from the troika to get the bailout fund and as such Greece will face default or bankrupt in September. Another concern is China slowing down still weighed on investors sentiment despite the recent monetary easing.
All the bad news just overshadow the 3-corner fight of APB when Heineken bid to take over last Friday. Furthermore, this afternoon Singapore released its June CPI coming in +5.3% above expectation of +5.1%. The stubborn high inflation has kept MAS in a catch-22 situation whereby should it continues to strengthen SGD ( which seems to be out of effect any more and questionable whether Singapore Government has run out of idea to curb inflation ) or risk economy growth declines further should it chooses to tighten to fight inflation.
Majority of the investors are selling out in the name of fear from global events. Those are short-term players flushing out. As usual, focus on the individual stocks and lookout for cheap bargain. We should see a pull back due to overbought and for those who are looking for deep correction, the time is not here yet.
