1. JMH 400US$ +1.800
2. JSH 500US$ +1.050
3. Jardine C&C +0.260
4. UOB +0.080
5. Capitaland +0.070
5. KepCorp +0.070
The top 5 loser component stocks were :-
1. SembMar -0.050
2. OCBC -0.040
3. HKLand US$ -0.040
4. StarHub -0.020
5. SingTel -0.020
5. SIA Engg -0.020
US markets fell almost 1% yesterday night after losing more than 1% in the earlier session. Asian bourses were mixed for the day with Nikkei closed -1.13%, SSE +1.02% and HSI -0.12%. STI managed to close +0.50% reversing earlier loss in moderate volume and 17 of the 30 index stocks posted positive closing.
NATO ( No Action Talk Only ) was what best described by the selling off in US, Europe yesterday and most Asian bourses today. Like US Fed, ECB only maintained interest rate at 0.75% and short of any immediate action which investors highly anticipating. However, if reading between the lines of what ECB President said yesterday night. It was a totally different story. For those who sold off or shorted would have to say they never bother to read between the lines. Though no action was mentioned yesterday but it was hinted of possible bond buying and other measures involved EU political leaders in possible next month ECB meeting. Reason being, August is when EU leaders taking summer break ( for goodness sake, let the overworked EU leaders have some break !!!! ). Furthermore, ECB unlike US Fed has to seek consensus from EU leaders if any action outside its scope has to be carried out. Should be seeing some strong political meeting between EU leaders next month in providing short-term solution for Spain and Italy. Also the newly created EU bailout funds will only be operation next month.
DBS this morning released its earning after OCBC yesterday and again it beats expectation. Investors have to analyze the situation carefully now. Global interest rate is low and Singapore inflation remains stubbornly high, the only way to hedge again inflation is putting money in defensive and high-yield stocks if not plain putting money in banks basically destroys the value of the money. As such, should the market being irrational and sold down due to like what we seen (the after effect of US Fed and ECB meeting), it will be opportunity to collect cheap for those defensive and high-yield stocks. Funds are still in those stocks and this has to be remembered.
