FTSE STI closed 3,011.55, down 5.67 points or -0.19% with a total volume of 1.18b and a total value of S$664M. Total number of advance vs decline was 155 vs 170. Of the 30 component index stocks, 10 closed positive, 4 unchanged and 16 closed negative. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.290
2. Jardine C&C +0.200
3. JMH 400US$ +0.190
4. Capitaland +0.030
5. SingTel +0.020
The top 5 loser component stocks were :-
1. DBS -0.100
2. UOB -0.070
3. CityDev -0.070
4. SIA -0.060
5. OCBC -0.050
5. KepCorp -0.050
5. HKLand US$ -0.050
US markets were closed for Labor Day yesterday while European markets all closed positive in hope of some sort of easing policy from ECB this Thursday. Asian bourses were mostly down for the day with Nikkei -0.10%, SSE -0.75% and HSI -0.66%. STI swinging between positive and negative closed -0.19% in thin volume day and total value of the day hit a very low level of just S$664M. Only 10 of the 30 index stocks managed to close positive.
Lack of strong catalysts, with couple of big events ahead, most of the investors were sideline and for those who still in punting at the micro-penny stocks (look at the low total value of the day). ECB will have its monthly meeting this Thursday in which most anticipating some sort of probably bond buying program from ECB, with a possible of cut in interest rate and some detail on the banking union in which ECB will be the supervisor for it. Those especially the bond buying program is just a short-term solution to the EU crisis, the bigger picture is still Austerity vs Growth and need EU leaders to churn out some policies or measures for it. Friday will be US unemployment data in which most believe that will be the last set of economic data before US Fed meeting next time to decide on whether more easing will be required. Does QE really work despite US Fed Chief defended it last Friday ? Well unemployment rate has been impressive, the concept of QE might be good but in between how the excessive monies pass to the correct channel is debatable. Also can printing more monies really solve fiscal cliff ? While easing from Europe and China probably are expected as they needed those (and don't expect those can rally global markets, now is each individual country must look after themselves first) for US they need both the Democrats and the Republicans to really sit down putting nation interest first to solve the fiscal cliff issue.
Stress again, October till December is something to watch
