FTSE STI closed 3,062.12, down 3.62 points or -0.12% with a total volume of 2.19b and a total value of S$1.18b. Total number of advance vs decline was 161 vs 174. Of the 30 component index stocks, 15 closed positive, 3 unchanged and 12 closed negative. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.160
2. UOB +0.090
3. DBS +0.080
4. OCBC +0.03
5. Olam +0.025
The top 5 loser component stocks were :-
1. JMH 400US$ -0.930
2. Jardine C&C -0.770
3. SembMar -0.080
4. SembCorp -0.080
5. HKLand US$ -0.080
US markets closed negative with average at least 0.3% drop with a contraction in ISM Manufacturing data for November and concern of the US fiscal cliff weighed on. Asian bourses were mixed for the day with Nikkei -0.27%, SSE +0.78% and HSI +0.15%. STI closed -0.12% managed to recover part of earlier loss in heavy volume of more than 2 billion but total value for the day was thin. 15 of the 30 index stocks managed to register positive closing.
The global issue of slow growth and US fiscal cliff still weigh on investors in general. US Republicans proposed a fiscal cliff plan and focus will be on from this proposed plan, what type of compromises are the Republicans willing to accept and how the debate will move along. Markets will be sensitive towards any development on that.
In STI, investors in general still cautious and today focus was on Olam due to yesterday announcing for a right issue containing bond-cum-warrants. That action has caused some short-covering which result in rebound in Olam share price but in the boarder sense, the high debt level and low cash flow in Olam still exist. Unless the company can cleanup the debt level without the need to tap on fund raising, the concern still on. As a cautious, it is never wise to touch on Olam despite what analysts have been saying or whatever action has been carried out by funds that are committed to supporting Olam.
