1. JMH 400US$ +0.450
2. StarHub +0.070
3. SingTel +0.060
4. CityDev +0.050
5. Capitaland +0.030
5. Wilmar +0.030
The top 5 loser component stocks were :-
1. Jardine C&C -0.280
2. UOB -0.090
3. KepCorp -0.060
4. HKLand US$ -0.060
5. F&N -0.050
US markets were flat yesterday night holding up by tech and financial stocks coming to this eventful week. Asian bourses like yesterday were mixed with Nikkei -0.16%, SSE +0.54% and HSI -0.02%. STI reopened after yesterday holiday was flat with a +0.12% closing, crawling back the loss from last Friday in moderate volume. Only 12 of the 30 index stocks managed to register positive closing.
It was basically directionless trading day with investors awaiting for outcome of couple of events later this week. Firstly, US Fed Jackson Hole meeting at end of this week in which investors are looking for cue of QE3. On Thursday, EU leaders will be meeting to discuss whether to approve Greece request for extension to meet the targets and another watchful event would be the ECB whether it will come in to do bond buying or not. US doing QE3 ? to put it, they don't need as their problem can only be solved by lawmaker policies. Greece's extension whether approve or not probably will have some knee-jerk reaction to the market. Failing to approve might resurface talk of Greece exit of Euro. As for ECB bond buying, this has been toggling for past days with German Central Bank strongly oppose to it ( unlimited support of the bond market by ECB ). Whether ECB bond buying approve or not, this is not a long term solution to EU debt crisis, it is merely a short-term stopper to the downside only. Hence, investors still need to focus on the Growth vs Austerity issue.
For Singapore, the focus switched back to F&N and APB after Heineken up the bid to S$53/share last Friday. Other than that, most of the stocks were just range bound.
Would highlight that recent Goldman Sachs has been advising investors to sell off equity and be cautious of the fiscal cliff in US. Regarding this issue, have mentioned before in 8th August 2012 Market Analysis and would like to cautious investors on a possible October to December correction.
