FTSE STI closed 3,029.61, down 27,90 points or -0.91% with a total volume of 2.32b and a total value of S$1.25b. Total number of advance vs decline was 114 vs 292. Of the 30 component index stocks, 4 closed positive, 2 unchanged and 24 closed negative. The 4 gainer component stocks were :-
1. HKLand US$ +0.110
2. JSH 500US$ +0.100
3. CapitaMall +0.020
4. CityDev +0.010
The top 5 loser component stocks were :-
1. JMH 400US$ -0.660
2. Jardine C&C -0.510
3. KepCorp -0.280
4. UOB -0.240
5. F&N -0.170
US markets closed flat last Friday when investors were divided between weak corporate earnings and a better than expected 3Q GDP of +2%. Asian bourese after last Friday sold down continued to drift lower with Nikkei -0.04%, SSE -0.35% and HSI -0.16%. STI playing catch up on last Friday fell 0.91% with heavy volume of more than 2 billion and only 4 of the 30 index stocks managed to register positive closing.
US markets will be closed for today due to the hurricane Sandy. The potential damage of hurricane Sandy at this moment of time when US economy was stalling definitely not doing any good to it. As such, Asian bourses were reacting to the damage that could cause by it. Apart from this reaction, STI was also subjected to month end window dressing (window dressing could result in either stock prices down when funds sold to lock in profit or jacking up of stock prices to beauify portfolio) as seen by the heavy volume.
Investors will be closely monitored some critical events over the 2 next months for market direction. Namely, US Presidential Election in November, China changing of leadership in November, EU Summit in December and the ongoing US fiscal cliff threat from November to December. Markets could be volatile swinging from one direction to the next while those events develop as time goes by. Nevertheless, keep option open of a potential market bottom in December thereby further confirming the last leg of bull market which started in 2009. This last leg of bull market is a trader market and not investment market. Should there is a need to buy, be sure to maintain tight risk management and know when to exit and take profit.
