FTSE STI closed 2,978.03, down 29.54 points or -0.98% with a total volume of 2.43b and a total value of S$1.67b. Total number of advance vs decline was 143 vs 254. Of the 30 component index stocks, 3 closed positive, 3 unchanged and 24 closed negative. The 3 gainer component stocks were :-
1. KepCorp +0.100
2. F&N +0.020
3. GoldenAgr +0.005
The top 5 loser component stocks were :-
1. JSH 500US$ -1.260
2. JMH 400US$ -0.640
3. Jardine C&C -0.200
4. CityDev -0.190
5. DBS -0.090
US markets closed in the red again yesterday after a see-saw ride. Asian bourses after yesterday selling down mostly rebounded and closed positive. Nikkei +0.04%, SSE +0.37% and HSI +1.20%. STI playing catchup due to yesterday closing for public holiday closed -0.98% in heavy volume of more than 2 billion. Only 3 of the 30 index stocks managed to close positive.
Firstly, EU granted Greece a delay of 2 years to meet the 120% debt to GDP target in lockhead with IMF and that brought some worries to investors which caused the selling off yesterday. US markets hence opened in the red but in the middle of the day Greece Finance Minister's comment of possible getting the bailout fund next week managed to reverse the market positive. Later part when investors refocus back to the fiscal cliff, market sold down again. Basically, those sensitive events were causing market to trade very technically (all thanks to algo-trading) when hitting support rebound and hitting resistance sold down. Not much of a fundamental and rational market but rather computer trading with computer.
The rational and logical part. EU leaders in the past have been coming out to stress they want Greece to be in the Euro. Though Greece facing bankrupt tomorrow and in need the money next week to pay debt and there is still no confirmation from rest of the EU Finance Ministers of whether to release the fund to Greece or not. Should EU no releasing the funds to Greece and allow it to default why in the first place all the EU leaders stressing for Greece to be in Euro ? That is something investors need to give a deep thought instead of straight jumping in conclusion.
For US, President Obama will be meeting with business leaders tonight and Congress leaders from both Democrats and Republicans this Friday to discuss on the fiscal cliff issue. Though no deal is supposed to come out from those meeting, nevertheless, the outcome of the meeting with give a first hand of what to expect when US Congress working out deals to avoid the fiscal cliff. Investors should not be overly pessimistic about the fiscal cliff issue.
China has completed the leadership transition week with today and tomorrow namely all the key appointment holders. What to lookout for will be will those new leaders able to executive the economy reform blueprint successfully for the next decade.
Singapore more or less concluded the 3Q earning season today and investors will be focsuing on global events for direction of the market. While there are still funds trying to sell, some cautious bargain hunting was detected. Investors should not speculate on when market will hit the bottom but rather focus on individual stocks and watchout for bargain hunting opportunity.
