1. JMH 400US$ +0.920
2. JSH 500US$ +0.110
3. DBS +0.070
4. KepCorp +0.070
5. SembCorp +0.070
The top 5 loser component stocks were :-
1. UOB -0.220
2. CityDev -0.170
3. Jardine C&C -0.140
4. SGX -0.040
5. Olam -0.030
US markets closed mixed yesterday easing off loss after Fed minutes. Asian bourses were mostly positive for the day with Nikkei +0.51%, SSE +0.25% and HSI +1.23%. STI though eased some gain later in the afternoon but still managed to close +0.23% in a slightly higher volume with 18 of the 30 index stocks posted positive closing.
The Fed minutes did the job. According to the Fed minutes, majority of the Fed members were ready to roll out stimulus unless the economic situation improves and in a sustainable mode. This more or less gave investors hint of possible QE3 coming. Should a QE3 launches, the available of cheap money does make some bullish sentiment for investors which causes stock markets to move up but the underlying of whether QE3 can solve the US economy in particular unemployment situation is a different issue. Past 2 rounds of QE failed to address that and don't see any different this time round. Hence, don't be overly bullish should a QE3 launches as months later when the QE effect fades, everything will go back to square one and market will correct again.
Next on the card is the meeting tonight by EU leaders on whether to approve Greece request for 2 years extension to meet the deficit target. If no, Greece could go bankrupt next month and possible exit Euro. Should it be yes and how can be assured 2 years later Greece is able to meet the target. A compromise might be made for the extension approval with some conditions.
HSBC reported China flash PMI this afternoon for August coming in at 47.8, a drop from the previous month of 49.3. The figure weighed on investors but looking at another side of the view, the dip in reading further enhanced the chance of more easing from Chinese Government. Again, China easing do not generalize as benefit globally, so don't get overly bullish again and rush into stock markets. European bourses opened in positive region but gave up some gain after report on Euro-area services and manufacturing output contracted for seventh straight month. This was when STI gave up some gain.
Singapore reported its July CPI coming in at +4.0% better than the expected of +4.4%. This has eased some concern for MAS in tweeting the policy to fight with the stubbornly high inflation.
As a whole, short-covering and some buying inertia notched STI to close positive.
