FTSE STI closed 2,945.63, down 0.29 points or -0.01% with a total volume of 1.45b and a total value of S$1.47b. Total number of advance vs decline was 198 vs 162. Of the 30 component index stocks, 15 closed positive, 2 unchanged and 13 closed negative. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.530
2. JMH 400US$ +0.260
3. F&N +0.150
4. Jardine C&C +0.060
5. OCBC +0.050
5. ST Engg +0.050
The top 5 loser component stocks were :-
1. CityDev -0.150
2. KepCorp -0.130
3. DBS -0.100
4. SembMar -0.080
5. GLP -0.070
US markets closed negative again yesterday after report of Euro-area sank into recession again for the second time within 4 years and the fiscal cliff still weigh on. Asian bourses were mixed for the day with Nikkei +2.20%, SSE -0.77% and HSI +0.24%. STI managed to crawl back from loss and closed flat with -0.01% of moderate volume. 15 of the 30 index stocks managed to register positive closing.
Technically speaking, markets were due to oversold rebound and also investors closing short position ahead of tonight President and congress leaders meeting to discuss on fiscal cliff. There are 2 possible and likely outcome from tonight meeting. Obama standing firm on taxing more from the riches and Republicans refuse to compromise on that. That outcome will result in more volatile market going into next month. Another outcome will be Republicans appear to be able to compromise and that probably will cause market to range bound and consolidate until a final deal has been proposed next month.
Nikkei continued to rally as investors betting on more stimulus from the post-election next month. Singapore this morning reported its 3Q GDP coming in at -5.9% vs -1.5% expected and with that Singapore Government lowered its forecast 2012 GDP to 1.5% from 1.5%-2.5% and projecting 2013 GDP to be from 1.% to 3%. Not a pretty set of data as the manufacturing output put a dent to the 3Q GDP.
