1. Jardine C&C +0.870
2. HKLand US$ +0.080
3. DBS +0.070
4. KepCorp +0.060
5. OCBC +0.030
The top 5 loser component stocks were :-
1. JSH 500US$ -0.430
2. UOB -0.220
3. JMH 400US$ -0.220
4. GLP -0.060
5. Wilmar -0.030
5. Capitaland -0.030
US markets closed at least +0.6% with S&P500 hitting 4-month high yesterday night due to better economic data and comment from Germany's leader. Asian bourses taking the cue were mostly positive for the day. Nikkei +0.77%, SSE +0.13% and HSI +0.77%. STI failed to keep up with regional bourses in thin volume trade closing -0.03%, total value dipping below S$1b and 12 of the 30 index stocks registering positive closing.
Germany's leader Angela Merkel yesterday comment of Germany backs Draghi on conditions for ECB help coupling with Spain accelerating request for international bailout provided a boost to investors' sentiment helping global bourses closing positive. Other than that, investors are also hoping for some form of stimulus next month from Central Banks resulting in some downside support for global bourses. Whether there will be stimulus next month better not speculate and chasing stock prices to play for that speculation is high risk. In short, US Fed should not be launching QE3 as it doesn't help anything. Rather investors should focus on 2 events on US in the coming months. Firstly, the deficit reduction panel ability to propose something and outcome of US Presidential election as it will decide on US policies to change the economy. That are the things US needed in order to save their economy rather than QE. As for Europe, the ESM funds will commence operation next month and potential that could be tapped to use in bond buying to resolve short-term issue for Spain and Italy. However, the underlying of EU leaders coming out measures and policies to work on Growth vs Austerity still the main focus for EU to resolve the crisis.
Singapore this morning reported its July non-oil export data coming in pretty much in line with expectation. In STI again weakness in high-yield and defensive stocks can be seen as funds after parking their money in those stocks to build a base for their portfolio since mid June should be rotating to target higher-beta, cyclical and laggard stocks for capital gain. Other than that, nothing much has happened. The weakness in closing for STI compared with regional bourses was mainly due to next Monday will be a public holiday for STI and hence investors are in no mood for having position over the weekend.
Investors should focus on the fundamental of the individual stocks given recent earning season is over and which are the better stocks should be obvious. Any weakness or irrational selling down should be a buying opportunity rather than chasing the stock prices in speculating and hoping for stimulus play next month.
