FTSE STI closed 3,057.51, up 12.78 points or +0.42% with a total volume of 1.33b and a total value of S$953M. Total number of advance vs decline was 186 vs 176. Of the 30 component index stocks, 3 closed negative, 2 unchanged and 25 closed positive. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.210
2. UOB +0.180
3. SGX +0.070
4. Capitaland +0.050
5. HKLand US$ +0.050
5. ComfortDelGro +0.050
The 3 loser component stocks were :-
1. Jardine C&C -0.370
2. CityDev -0.040
3. Wilmar -0.010
US markets closed negative giving up all the gain from earlier session after US FOMC meeting. Asian bourses were mostly positive for the day with Nikkei +1.13%, SSE -0.68% and HSI +0.21%. STI rose 0.42% in thin volume day with 25 of the 30 index stocks registered positive closing.
US corporate earning continued to show weakness but economic data are improving. Outcome of US FOMC meeting pretty much a no-show event as US Fed maintain its commitment of QE3 until the labour market show improvement. It also commented on US economy showing slow improvement. The no-show event probably not pleasing investors well as the existing weak corporate earning weighed on resulting in markets selling off after US Fed comment.
Asia bourses however were on a different wavelength. The commitment of US Fed on QE3 and assuring of US economy slowing improvement gave some boost to investors. Singapore this afternoon announced its September Manufacturing Output data coming in at -2.5% on year vs +1.9% expected. That show how didn't dent investors appetite. Bargain hunting and prelude to next week month end window dressing helped STI to close +0.42% ahead of the long weekend.
While a short-term rebound which could last till mid November is on the card, do keep the option opens on the fiscal cliff US will be facing from mid-November to December and could potentially cause market to pull back to create the last bottom for the final leg of the bull run.
