FTSE STI closed 2,995.90, down 15.65 points or -0.52% with a total volume of 1.26b and a total value of S$991M. Total number of advance vs decline was 108 vs 240. Of the 30 component index stocks, 4 closed positive, 3 unchanged and 23 closed negative. The 4 gainer component stocks were :-
1. JMH 400US$ +0.410
2. Jardine C&C +0.060
3. GLP +0.030
4. StarHub +0.030
The top 5 loser component stocks were :-
1. CityDev -0.180
2. DBS -0.120
3. JSH 500US$ -0.100
4. KepCorp -0.090
5. SembCorp -0.080
5. SGX -0.080
US markets closed mixed yesterday night after August PMI came in contraction and missed expectation. Nasdaq being positive was merely support by Apple only. Asian bourses were all in the red the day with Nikkei -1.09%, SSE -0.29% and HSI -1.47%. STI fell 0.52% in thin volume with total value came in less than S$1b. Only 4 of the index stocks managed to register positive closing.
Slow down in US, Europe and China weighing on investors concern of global economy and at the same time these sluggish data also suggesting urgent need of easing measures. It is just a matter of time when these measures will launch. In Europe, investors are awaiting tomorrow ECB meeting to see whether what measures ECB will have up its sleeve. Another interest rate cut, detail of supervision role of the banking union and bond buying program are all on the card. While those measures might curb some downside of EU debt crisis, investors should not divert always from the Austerity vs Growth issue in which EU leaders need to provide plans, policies and measures for it. Perhaps the next EU Summit might see some detail on that. As for US, debate on QE3 still ongoing. Well it is not a matter of have or not but rather effectiveness of it. Fiscal cliff US is facing coming end of the year and that is something lawmakers must come out fiscal measures for it and not pure printing out to resolve.
The current downside biased market might be an enact for the October to December showdown. Investors should not get into panic mode and sell but rather used this period to identify what stocks to bargain hunt when the final showdown occurs. Miss that boat again will be probably twice in a row (last October, this June and probably this October to December).
