FTSE STI closed 3,076.65, down 31.22 points or -1.00% with a total volume of 1.76b and a total value of S$1.04b. Total number of advance vs decline was 104 vs 316. Of the 30 component index stocks, 3 closed positive, 4 unchanged and 23 closed negative. The 3 gainer component stocks were :-
1. KepCorp +0.040
2. GLP +0.020
3. SIA Engg +0.020
The top 5 loser component stocks were :-
1. JMH 400US$ -1.790
2. JSH 500US$ -0.750
3. Jardine C&C -0.510
4. CityDev -0.280
5. UOB -0.260
US markets closed mixed last Friday paring gain after the release of unemployment data. Asaia bourses were in the red for the day with SSE -0.56% reopened after 1 week break, HSI -0.89% and Nikkei was closed for holiday. STI in line with regional bourses closed -1.00% in moderate volume with only 3 of the 30 index stocks managed to register positive closing.
US unemployment rate came down to 7.8% with 114,000 job last month, not fantastic nor very bad set of data causing investors not much of any incentive to buy up the market. A buy on rumor and sell of news type of scenario. It is now left to the new President to come out policies to save US unemployment and no other means (not even with US Fed QE3). There was a little bright spot in today news that was HSBC September China service PMI rose to 54.3 better than previous month and expectation. However, that doesn't bring much cheers to regional bourses as investors are now focusing on Europe. EU Finance Minister will be meeting tomorrow ahead of next week EU Summit and problem with Spain and Greece resurfaced. EU ESM also is also set to commence operation today.
For Singapore, STI was pushed up last Friday mainly due to the Jardine group of shares causing it to close above 3,100, a new 52-week high and today it was also the 3 Jardine shares to contribute to much of STI 1% drop also. Additional elements that caused the drop was by banking and property stocks reacting to the latest Government property curbing measures announced last Friday after market closed. Minus those off, most of the shares were in consolidating phase ahead of their earning season.
The focus for this month will the EU Summit and earning season. Any buying on dip will have to focus solely on strong fundamental stocks and prepare for volatility till end of the year in which US fiscal cliff will be in focus after the November Presidential election.
