FTSE STI closed 3,011.77, down 0.14 points or 0% with a total volume of 2.53b and a total value of S$1.27b. Total number of advance vs decline was 158 vs 190. Of the 30 component index stocks, 14 closed positive, 1 unchanged and 15 closed negative. The top 5 gainer component stocks were :-
1. UOB +0.320
2. SingTel +0.080
3. OCBC +0.050
4. SIA +0.050
5. ST Engg +0.050
The top 5 loser component stocks were :-
1. JMH 400US$ -1.720
2. Jardine C&C -1.280
3. JSH 500US$ -0.680
4. KepCorp -0.140
5. HKLand US$ -0.060
5. Olam -0.060
US markets fell at least 0.3% yesterday night as concern on the Congress negotiation of the fiscal cliff might not be smooth. Asian bourses were all in the red for the day. Nikkei -1.22%, SSE -0.89% and HSI -0.62%. STI managed to close flat in heavy volume with moderate value. 14 of the 30 index stocks managed to register positive closing.
Investors are now focusing on the US fiscal cliff resolution and going forwards market will be sensitive to development of it as to how the Congress going to compromise and resolve the issue.
Singapore stocks were in a divided mode today with SingTel gaining 8 cents holding up the STI index cushioning the impact of the 3 Jardine group of stocks which all fell at least 2%. Olam was in focus again falling 3.85% after Muddy Waters release of the report and Olam coming in to defense the claims. Who is right and who is wrong is no longer important. The hard fact of Olam having high debt level should ring a bell to retail investors and stay away from the stock even though some analysts might issuing buy call on weakness. It is always to be safe than sorry for retail investors. Other than that, penny and micro-penny stocks dominated the market activities again. Some worthy observation for today was there was morning selling pressure for the high-yield and defensive stocks but most of them managed to rebound from day low and this is something investors should pay extra attention to it. Keep in mind the option that the drop in share prices of S-Reits in which their dividend yield is between 0.3% to 0.5% higher than their respective peak is an opportunity.
