1. SGX +0.080
2. GLP +0.060
3. SIA +0.060
4. SembCorp +0.030
5. HKLand US$ +0.020
The top 5 loser component stocks were :-
1. JMH 400US$ -0.520
2. JSH 500US$ -0.450
3. Jardine C&C -0.240
4. F&N -0.060
5. OCBC -0.040
US markets closed mixed yesterday night with Apple holding Nasdaq positive in a thin volume day. Asian bourses were mixed for the day with Nikkei -0.57%, SSE +0.85% and HSI +0.07%. STI practically stay flat throughout the day in thin volume trade closing -0.15% with only 10 of the 30 index stocks closing positive.
A while ago investors were typically bullish due to the "possible QE3" events however now investors started to think might not have and will disappoint market resulting in quiet selling of stocks. It is not a matter whether will have or will not have QE3, rather it is the effectiveness of QE3. It is already on the table according to past 2 QEs on the effectiveness. Should there be a panic selling due to no QE3, that is the opportunity to buy. US facing fiscal cliff issue as said by US Fed Chief months ago and 2 events will be focusing in the remaining of the year for US. The deficit reduction panel ability to come out some proposal before the auto budget cut across the board activate next January, that is the potent impact of fiscal cliff. Next on the card is the US Presidential election. It is a wildcard as we do not know of the outcome. Given the fact that both side of the parties coming out with proposal of the economy reform plan, each having pros and cons, it is difficult to say which is good. For the time being, based on past history, if have noticed, most of Obama's proposals have been shot down by the Republican dominated Congress ( the Buffett tax bill and the Job bill, etc ). Should Republican wining the Presidential election, the chance of proposals being shot down by the Congress will be lesser. Another question investors have to ask is "Can printing money solve fiscal cliff" ? The answer is obvious and hence better not pin hope on QE or not. Have or no have, make no different to the fiscal cliff issue.
Japan downgraded its economy assessment today and dragging down sentiment of investors. STI though on thin volume, there are selective stocks undergoing month end window dressing.
