FTSE STI closed 3,030.14, up 0.48 points or +0.02% with a total volume of 1.45b and a total value of S$1.46b. Total number of advance vs decline was 203 vs 157. Of the 30 component index stocks, 9 closed positive, 5 unchanged and 16 closed negative. The top 5 gainer component stocks were :-
1. Jardine C&C +0.640
2. F&N +0.410
3. GLP +0.200
4. NOL +0.030
5. StarHub +0.030
The top 5 loser component stocks were :-
1. JMH 400US$ -0.420
2. JSH 500US$ -0.360
3. CityDev -0.120
4. OCBC -0.080
5. HKLand US$ -0.080
US markets closed positive yesterday after news of German court ruled approval of ESM but with conditions. Asian bourses were however mixed for the day with Nikkei +0.39%, SSE -0.76% and HSI -0.14%. STI just manged to edge out a tiny positive gain of 0.02% in moderate volume with only 9 index stocks managed to post positive closing.
It was all about US FOMC meeting outcome for the day. As most expected US Fed to roll out QE3 but it can don't do a QE3 either. The possibility of no QE3 is there and will not be surprised at all. US Fed would just maintain low interest rate and use the same tone of it will act when required. US problem is not monetary or credit crunch but the fiscal cliff. No way printing money can resolve the fiscal cliff. Should there is no QE3 and tomorrow market reacts irrationally and illogical with a sell down, that would be bargain opportunity for short-term play.
STI today was dominated with the news that ThaiBev doing an offer of S$8.88/share to acquire F&N and share of F&N jumped and closed +4.82% after trading halt was lifted. ThaiBev's move will no doubt complicate the acquiring of APB by Heineken. However, the success of ThaiBev in taking over F&N will be another unknown as certain major shareholders in F&N might not accept that deal. It is just too many combination for the F&N and APB saga which no matter what's the outcome, long-term loyal F&N shareholders will benefit from it.
The Yankie forever never learn their lesson !!!
