FTSE STI closed 3,017.22, down 8.24 points or -0.27% with a total volume of 910M and a total value of S$662M. Total number of advance vs decline was 192 vs 184. Of the 30 component index stocks, 10 closed positive, 5 unchanged and 15 closed negative. The top 5 gainer component stocks were :-
1. JMH 400US$ +0.180
2. ST Engg +0.040
3. StarHub +0.030
4. Wilmar +0.020
5. F&N +0.010
5. GLP +0.010
5. JSH 500US$ +0.010
5. NobleGrp +0.010
5. SembMar +0.010
The top 5 loser component stocks were :-
1. Jardine C&C -0.490
2. SembCorp -0.110
3. SIA -0.050
4. OCBC -0.050
5. DBS -0.050
US markets rose last Friday with at least 0.50% after US Fed's presentation at Jackson Hole. Asian bourses were however mix for the day with Nikkei -0.63%, SSE +0.57% and HSI +0.39%. STI after last Friday month end window dressing gave back some gain, closing -0.27% in a very thin volume day with less than 1 billion volume and only 10 of the 30 index stocks managed to register positive closing.
It was eventful over the weekend. Firstly, investors taking time to digest US Fed Chief's presentation at Jackson Hole. He did not specifically detail on possible there will be QE3 but instead defended Fed's action for past QEs and leave door open for more easing if situation required. Next China released its official PMI for August coming in 49.2, a contraction after several months of manage to stay in expansion mode. This was worrying for Chinese Government without doubt. On the surface it was a bad news but this piece of new further required the Chinese Government in need of immediate monetary policy so that its economic growth will not fall further and missing forecast. However, the easing must be carefully crafted as it could inflate asset classes like property which the Chinese Government has been aggressively curbing down for past years.
STI was practically directionless and listless swinging between positive and negative as indicated by the less than 1 billion daily volume. Investors are being very cautious now as September has couple of events which might turn the market one way or the other. US Fed meeting, ECB meeting and German court ruling are among the events within the first two week of September that could dictate the direction of the market. Investors are without doubt very focus on the subject of stimulus for the time being. Putting that aside, that is another major event in US between October and December that could decide the fate of so called fiscal cliff. The deficit reduction panel and US Presidential election. Do have the option opens that market will undergo correction between October to December with December hitting the low, rebounding to form the last leg of the bull cycle which started in 2009.
