FTSE STI closed 3.067.93, down 10.30 points or -0.33% with a total volume of 1.54b and a total value of S$2.20b. Total number of advance vs decline was 159 vs 253. Of the 30 component index stocks, 3 closed positive, 3 unchanged and 24 closed negative. The 3 gainer component stocks were :-
1. JMH 400US$ +1.500
2. JSH 500US$ +0.640
3. HKLand US$ +0.090
The top 5 loser component stocks were :-
1. SIA -0.210
2. DBS -0.150
3. OCBC -0.110
4. KepCorp -0.090
5. SGX -0.080
US markets closed mixed last Friday and Asian bourses were mostly negative for the day. Nikkei -0.45%, SSE +0.32% and HSI -0.19%. STI fell 0.33% in moderate volume but total value exceeding S$2b. Only 3 of the index stocks managed to register positive closing.
The lack of direction from US markets last Friday in which most giving up gain to close mix and news over the weekend that EU leaders facing disagreement on Banking-Union pretty much provide the direction for today trading. Exception was China in which anticipation of more monetary easing help SSE closed positive. STI volume was moderate but total value was high probably due to more transaction on the more than S$1 stocks ahead of this Friday 3Q window dressing. There will be window dressing for sure as fund managers adjusting their portfolio to cater for next month earning season and not to forget the excessive liquidity provided by US Fed on its QE3.
Singapore reported its August inflation coming in +3.9% slight above the expected value of +3.8%. Still on the high side and with global low interest rate till at least mid 2015, investors pretty much must think of how to hedge against inflation and not destroying value of money by just putting inside saving banks.
