FTSE STI closed 3,045.90, up 34.13 points or +1.13% with a total volume of 2.68b and a total value of S$1.49b. Total number of advance vs decline was 258 vs 126. Of the 30 component index stocks, 26 closed positive, 1 unchanged and 3 closed negative. The top 5 gainer component stocks were :-
1. Jardine C&C +1.230
2. JMH 400US$ +0.350
3. CityDev +0.210
4. KepCorp +0.200
5. SembCorp +0.180
5. SembMar +0.180
The 3 loser component stocks were :-
1. JSH 500US$ -0.100
2. F&N -0.020
3. IHH -0.005
US markets reversed earlier loss and did a 1% swing to close positive with average +0.80%. Asian bourses taking the cue mostly closed positive for the day. Nikkei +0.99%, SSE -0.51% and HSI +0.99%. STI in line with regional bourses closed +1.13% in heavy volume and moderate value. 26 of the 30 index stocks registered positive closing.
Comment by President Obama that he is confident the fiscal cliff deal can be closed before Christmas and Republican House Representative also sounded optimism in resolving the fiscal cliff did the trick for the intra-day reversal. As mentioned, market currently is very sensitive to the development of the US fiscal cliff. Any positive or negative comments or actions could lead market to swing one direction to another. Short-term traders will be caught if not careful and for mid to long-term investors, the "buying on weakness" is totally applicable.
2 events dictated the sentiment for STI today. The "bullishness" from US market and end of the month window dressing by fund managers. While it is still too rule to conclude US fiscal cliff deal is closed and done with until the detail of how and what measures are been proposed, investors should be maintain cautiously optimism and not overly bullish or bearish about it. The volatility that comes with the sensitive to fiscal cliff events will have to be stomached.
