FTSE STI closed 3,029.66, up 13.26 points or +0.44% with a total volume of 1.37b and a total value of S$1.16b. Total number of advance vs decline was 251 vs 123. Of the 30 component index stocks, 20 closed positive, 5 closed negative and 5 remained unchanged. The top 5 gainer component stocks were :-
1. UOB +0.360
2. HKLand US$ +0.170
3. Jardine C&C +0.110
4. KepCorp +0.110
5. CityDev +0.080
The 5 loser component stocks were :-
1. JMH 400US$ -0.400
2. JSH 500US$ -0.370
3. F&N -0.150
4. SIA -0.040
5. SIA Engg -0.020
US markets closed positive yesterday ahead of German court ruling on ESM and US Fed meeting. Asian bourses were all positive with Nikkei +1.73%, SSE +0.28% and HSI +1.10%. STI closing +0.44% in a slightly more volume than past days and 20 of the 30 index stocks registered positive closing.
The German court ruling was Germany can ratify ESM bailout fund with conditions and one of the condition is putting a cap of about 190b euros on German liabilities. The outcome of the ruling wasn't not unexpected. Next on line investors will be looking at Thursday US Fed meeting to see whether QE3 could be rolled out or not.
The German court ruling and if QE3 does roll out however is not something investors should be overly excited about. Those are short-term solution to put a stopper to credit crunch. The bigger issue of fiscal cliff still hanging in the air and need lawmakers to really lay out fiscal policies to resolve. EU debt nations still need austerity to cut debt and at the same time policies to stimulate growth. US very much in need of fiscal policies to cut its debt and at the same time create jobs.
Though STI closing positive but most of the action pretty much due to short-covering. The buying still being very cautious.
