FTSE STI closed 3,008.72, down 2.98 points or -0.10% with a total volume of 1.11b and a total value of S$996M. Total number of advance vs decline was 171 vs 293. Of the 30 component index stocks, 10 closed positive, 4 unchanged and 16 closed negative. The top 5 gainer component stocks were :-
1. F&N +0.170
2. JMH 400US$ +0.150
3. DBS +0.110
4. UOB +0.110
5. SIA +0.040
The top 5 loser component stocks were :-
1. Jardine C&C -0.210
2. CityDev -0.140
3. HKLand US$ -0.120
4. SembCorp -0.100
5. JSH 500US$ -0.100
US markets closed positive last Friday after a below expectation non-farm payroll data. Unemployment rate dipped to 8.1% but the number of jobs created were way below expectation. Asian bourses were mixed for the day with Nikkei -0.03%, SSE +0.34% after trade data showing sign of slowing down and HSI +0.13%. STI dipped 0.10% in thin volume day with only 10 of the 30 index stocks managed to register positive closing.
The weak job data has increased the chance of US Fed rolling out QE3 this week. That was what most analysts and investors are hoping for. As mentioned it is not whether QE3 or not that matter but rather the effectiveness of it. Europe after ECB's action last Thursday, all eyes will be on German court ruing of the ESM on 12th September 2012. Today China reported its August trade data (import and export) and that wasn't an impressive set of data nevertheless. Continue showing Chinese economy slowing down but at the same time anticipating more stimulus from Chinese Government. Again, China will have its stimulus but will not be acting like "superhero" to save the rest of the world thereby causing global markets on a wild rally.
There wasn't much activities in STI today, practically flat as investors still remain cautious especially high-yield stocks like S-Reits where prices have been chased up for past weeks. While most are looking at those stimulus program, do not forget the overall picture in US, Europe and China. Actions being introduced lately might be good for short-term but not necessary for the long term. Fiscal policies still a must in order to resolve most of the problems facing US, Europe and China.
