FTSE STI closed 3,043.27, up 23.94 points or +0.79% with a total volume of 1.55b and a total value of S$1.30b. Total number of advance vs decline was 228 vs 116. Of the 30 component index stocks, 5 closed negative, 2 unchanged and 23 closed positive. The top 5 gainer component stocks were :-
1. JMH 400US$ +0.310
2. DBS +0.220
3. CityDev +0.210
4. HKLand US$ +0.200
5. SIA +0.120
The 5 loser component stocks were :-
1. Jardine C&C -0.090
2. SembCorp -0.060
3. JSH 500US$ -0.060
4. ComfortDelGro -0.010
5. Genting SP -0.010
US markets closed positive yesterday in anticipation of Obama winning the election. Asian bourses closed mostly positive for the day after confirming Obama won the election. Nikkei -0.03%, SSE -0.01% and HSI +0.71%. STI rose 0.79% in moderate volume with 23 of the 30 index stocks register positive closing.
It was a close fight and eventually Obama won by taking the key state of Ohio with the Republican still majority at the House level while Democrates at the Senate level. Stock markets got a relief after the election outcome and trigger a relief rally. Mitt Romney lost mainly due to strategic error in which he branded China as currency manipulator. His act might please the Amercians but definitely not rest of the world. Current global economy is in such a state that every countries have to work hand in hand to resolve all those crisis and not doing a finger pointing game. Obama's victory will ensure US relationship with rest of the world in particular China remain at least at status quo. As mentioned yesterday Market Summary, should Obama win, stock markets will have an uplift for the short-term and don't get overly excited about. The main issue on fiscal cliff still there and should be in focus from mid November onwards. This fiscal cliff if not handle probably regardless of who the new President is can bring US back to recession.
Markets could be on an up swing but will be short-lived. There are funds detected trying to sell off on this uplift probably been cautious ahead of the uncertainty in the fiscal cliff issue. Tomorrow China will start on the leadership transition and this should not be a shocker as the transition has been in planning and nothing of a surprise of who will be the President and Premier.
