1. JSH 500US$ +0.380
2. Jardine C&C +0.370
3. UOB +0.240
4. DBS +0.140
5. KepCorp +0.130
The top 5 loser component stocks were :-
1. SIA -0.130
2. CityDev -0.100
3. HKLand US$ -0.050
4. GLP -0.030
5. ST Engg -0.010
US markets fell average 1% but managed to bounce off from at least 1.5% down due to EU problem again. Asian bourses after yesterday selling down closed mixed for the day. Nikkei closed -0.24%, SSE +0.24% and HSI -0.79%. STI outperformed regional bourses with a +0.53% but volume was thin as coming in less than 1 billion. 22 of the 30 index stocks managed to register positive closing.
Couple of events for the day. Firstly, the nothing new everlasting EU issue which focus on Spain potential full bailout, Greece with today torika meeting could determine whether they can negotiate new terms for the bailout funds (if not Greece will be bankrupted in September and potentially exit Euro ), HSBC released China flash PMI for month of July coming in 49.8, still in contraction mode but rebound from past months of lower reading indicating the past 2 rounds of monetary easing is taking effect. HSI only opened for the afternoon session due to typhoon.
The thin volume indicating investors were very cautious and caught in a catch-22 situation in which after yesterday drop, some wanted to come in bargain hunt but in fear of more troublesome events ahead. Market is in pull back mode and range-bound but not the deep correction which most are feared of. Not yet deep correction and that one will be in December when market goes for another bottom. Note this December bottom as it will have very significant meaning. That bottom could confirm a new bull market or rather the last leg of the current bull market which started in 2009 and that will be the last chance for investors to get in before the next global issue surfaces in 2014 and global economy in tail spin again.
Another point that worth noting is since almost every analysts and chartists are pointing out STI 3000 the resistance to look out for at the moment, that nevertheless create a irrational and illogical psychological barrier to most investors which cannot convince to buy after seeing STI fails to overcome the 3,000 level. Strongly stressed !!! look at individual stocks and not some STI number to determine buy or not. Don't see those analysts or chartists getting anything right from their views since October last year till now.
For Europe crisis, last Sunday the F1 said it all
"A Spanish driver (Alonso) in an Italian car (Ferrari) won the German Grand pix with a Greek design (aerodynamic design on the race car)"
