1. F&N +0.350
2. SIA Engg +0.100
3. HKLand US$ +0.060
4. UOB +0.060
5. Capitaland +0.050
5. JSH 500US$ +0.050
The top 5 loser component stocks were :-
1. JMH 400US$ -0.500
2. Jardine C&C -0.400
3. KepCorp -0.260
4. OCBC -0.070
5. DBS -0.070
US markets fell almost 1% yesterday night with concerns on the EU debt and corporate earnings. After the bell, Apple's earning missed expectation. Asian bourses ended the day mostly in the red. Nikkei closed -1.44%, SSE -0.49% and HSI -0.14%. STI though closed -0.25% but managed to bounce off from low. Trading volume was moderate with total value exceed total volume as F&N together with APB due to the M&A saga jacked up the total value. 13 of the 30 index stocks managed to post positive closing.
Asian bourses were in the red due to Apple missing earning expectation and IMF indicated China has down-side risk when it focus in investment to boost GDP. GLOBAL ECONOMY DOES NOT DEPEND ON APPLE. For those who sold due to the Apple earning, that sentence strongly remind you it is a big mistake that you have made. As for China issue, the slow down is there but it is slowly recovering after 2 rounds of monetary easing. Will not be seeing a sharp rebound like the case in 2008 but it will slowly bounce off from the bottom.
For STI, though market in general was down but if meticulous a bit can observe that S-Reit and high-yield defensive stocks were resilient either unchanged or inched up despite several of the S-Reits gone XD. This spelled something that funds should be building a base with those high-yield stocks in the portfolio. With global interest rate at low, bond yield also in record low mode and putting money in bank practically earning nothing, holding too much cash will do nothing but destroy the value of the money. Thus, funds are parking the money in those high-yield stocks to lock in a certain amount of return in the form of dividend. Now, this is the interesting part, after building a base with the high-yield stocks, the excess money in the sideline should be targeting those higher-beta stocks next. Be selective in those higher-beta stocks and should be the opportunity to ride it up when the funds rotate to those.
