FTSE STI closed 3,048.92, down 11.44 points or -0.37% with a total volume of 1.76b and a total value of S$1.34b. Total number of advance vs decline was 123 vs 260. Of the 30 component index stocks, 10 closed positive, 2 unchanged and 18 closed negative. The top 5 gainer component stocks were :-
1. F&N +0.360
2. IHH +0.035
3. CapitaMall +0.030
4. CapMallsAsia +0.020
5. GLP +0.020
5. SIA +0.020
The top 5 loser component stocks were :-
1. Jardine C&C -0.670
2. UOB -0.180
3. JSH 500US$ -0.170
4. OCBC -0.140
5. DBS -0.130
US markets closed negative yesterday due to unexpected rise in jobless claims and tech stocks. Asian bourses were however mixed for the day with Nikkei +0.22%, SSE -0.16% and HSI +0.15%. STI almost gave back all of yesterday gain with a 0.37% drop in moderate volume. Only 10 of the 30 index stocks managed to register positive closing.
Google and Microsoft following Intel and IBM releasing missing expectation earning dragging down the sentiment of US markets. Well finally US markets get back to reality with the drop. For the ongoing EU Summit, EU leaders are discussing on the banking union plans and so far nothing regarding measures to boost growth were discussed. This EU Summit might end up with a no event.
STI volume for the day was moderate mainly due to the 2 newly listed stocks commence trading today. Other than that, stocks were doing range bound as investors were caught in between corporate earnings and global events.
After corporate earning ending next month, investors should be focusing on the fiscal cliff issue in US which should be happening after the Presidential election. While the Deficit Reduction Panel might be able to come out a last minute proposal to avoid the auto cutting mechanism next January, current stock markets definitely have not been pricing in that event and hence investors should prepare for possibility of market drop when the fiscal cliff issue is in focus.
