FTSE STI closed 2,958.82, up 7.89 points or +0.27% with a total volume of 2.19b and a total value of S$1.26b. Total number of advance vs decline was 181 vs 167. Of the 30 component index stocks, 10 closed negative, 2 unchanged and 18 closed positive. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.430
2. CityDev +0.240
3. Jardine C&C +0.200
4. KepCorp +0.160
5. DBS +0.110
5. OCBC +0.110
The top 5 loser component stocks were :-
1. JMH 400US$ -0.690
2. Olam -0.130
3. SembCorp -0.060
4. Wilmar -0.050
5. ST Engg -0.040
5. UOB -0.040
US markets closed at least +1.6% yesterday with optimism on the fiscal cliff on top of better than expected home sales data. Asian bourses rose in the morning but with profit taking most close in the red. Nikkei -0.12%, SSE -0.40% and HSI -0.16%. STI outperformed regional bourses with a +0.27% in heavy volume with 18 of the index stocks register positive closing.
Moody's downgraded France credit rating, EU Finance Ministers meeting tonight and emergency EU Summit the day after to discuss on release of Greece bailout were the main focus for these few days as the US fiscal cliff issue temporary taking aside as US Congress only commences negotiation after 26th Nov.
STI has another headline that attracted investors focus apart from the global events. Olam was in spotlight after Muddy Waters' report on its accounting issue which caused a plunge in its ADR yesterday in US market and today after lifting of trading halt, Olam fell 7.47% in a very heavy volume. The total trading volume for STI mostly contributed by Olam. While Olam denied Muddy Waters' claims, investors are advised to sideline and cautious of Olam. Couple of stocks also being popped up in their respective price but market is very shaky at the moment. Should it fails to sustain in the next 2 days, expecting a pull back in the scale of 1%-2%.
Investors should not chase the market and maintain cautious wait for opportunity. The US fiscal cliff is not a done deal, the Middle East tension has not ceased and EU problem in Greece resurfaced this week again.
