1. Jardine C&C +0.790
2. JSH 500US$ +0.730
3. JMH 400US$ +0.650
4. UOB +0.400
5. OCBC +0.160
The top 5 loser component stocks were :-
1. SIA -0.100
2. F&N -0.060
3. SIA Engg -0.050
4. HKLand US$ -0.010
5. GLP -0.010
US markets rose average +1.5% last Friday after 2Q GDP came in +1.5% better than expected of +1.4% despite showing slowing growth as investors speculating Central Banks will act. Asian bourses taking the cue mostly closed positive for the day. Nikkei closed +0.80%, SSE -0.89% and HSI +1.61%. STI rose +1.14% in moderate volume with 22 of the 30 index stocks managed to register positive closing.
This week is a heavy data and events week with US FOMC and ECB meeting on Wednesday and Thursday respectively followed by US employment data this Friday along with Asian economic data. Investors were anticipating US Fed could announce QE3 as soon as this Wednesday while ECB President already said last week that ECB will act to save the Euro and possible bond buying program could be announced in the coming ECB meeting. That sentiment caused global stock markets on a buying spree ahead of those meetings.
Speculating on whether the 2 Central Banks will act is rather not a wise strategy at the moment. Investors should keep in mind that Central Banks will act if necessary and maintain the status quo of "cautiously optimistic". As such chasing the prices in anticipating some actions from Central Banks this week might have high risk. As usual maintain on buy on weakness.
Though global economy still in a cloudy mode, take some time and enjoy the every 4 years once Olympics.
