FTSE STI closed 2,945.92, down 32.11 points or -1.08% with a total volume of 2.63b and a total value of S$1.51b. Total number of advance vs decline was 77 vs 341. Of the 30 component index stocks, 3 closed positive, 2 unchanged and 25 closed negative. The 3 gainer component stocks were :-
1. JSH 500US$ +0.570
2. JMH 400US$ +0.280
3. Olam +0.030
The top 5 loser component stocks were :-
1. Jardine C&C -1.060
2. UOB -0.220
3. SembCorp -0.200
4. DBS -0.190
5. CityDev -0.180
US markets fell at least 1.3% yesterday night giving up all the earlier gain as concern for the fiscal cliff weighed on. Asian bourses were mostly down for the day. Nikkei +1.90%, SSE -1.22% and HSI -1.55%. STI fell 1.08% with heavy volume of more than 2 billion and only 3 of the 30 index stocks managed to register positive closing.
US President Obama in yesterday conference stressed again on increasing tax for the rich as an important measures for dealing with fiscal cliff, that very much in lockhead with the Republicans ahead of this Friday meeting with congress leaders. Investors were concerned of another deadlock in discussion this Friday. While it is too early to rule on outcome of the congress leaders meeting, just out it as the outcome will determine how the deal will be going to be negotiated in the coming weeks. An air strike by Israel which caused middle east tension also weighed on investors causing crude oil price to jump up.
Japan however was on another wavelength today as investors were looking forwards towards to next month election. Hoping a better outcome will emerge as under current leader, Japan basically is about to go back to recession again.
China today concluded the leadership change over with naming of the top 7 key personal for the key post. That outcome cause both SSE and HSI to sell on news after that.
Singapore will facing with funds selling at the moment and STI is just less than 100 points away from 2,850, a level worth watching.
In general markets have been oversold for past days and is about to have an oversold rebound. This Friday congress leader meeting could cause the markets to swing either direction depending on the outcome. Might be seeing some short-covering today and tomorrow which should allow market to rebound a bit ahead of tomorrow event.
