FTSE STI closed 3,075.92, up 13.80 points or +0.45% with a total volume of 2.23b and a total value of S$1.26b. Total number of advance vs decline was 235 vs 163. Of the 30 component index stocks, 8 closed negative, 2 unchanged and 20 closed positive. The top 5 gainer component stocks were :-
1. UOB +0.360
2. JSH 500US$ +0.310
3. CityDev +0.210
4. DBS +0.110
5. SGX +0.090
5. SembMar +0.090
The top 5 loser component stocks were :-
1. Olam -0.085
2. JMH 400US$ -0.040
3. SIA -0.030
4. Jardine C&C -0.020
5. CapMallsAsia -0.020
US markets closed negative with at least 0.1% drop. Asian bourses however were on a different note for the day with mostly ended positive. Nikkei +0.39%, SSE +2.87% and HSI +2.16%. STI rose 0.45% in heavy volume but thin value. 20 of the 30 index stocks registered positive closing.
US markets sank into the red after US President insisted the fiscal cliff deal should include more taxing on the rich. The Republican proposed fiscal cliff plan however resisted that. On the surface the great division between the Democrats and the Republicans in resolving the fiscal cliff still there and that caused investors to worry whether US can avoid the fiscal cliff. However, looking at the brighter side, both parties already showed out what they want and no hiding of an ace in front of their chest. To be frank to each other could be a better way to work towards compromise. Do not get overly bearish with the division as the underlying could be different.
In Singapore, apart from taking cue from regional bourses positive sentiment (from SSE and HSI), the other focus is on Olam. Despite the announcing of right issue, share price continued to tumble with today dropping another 5%. Since the Muddy Waters saga, if keeping track with all the analysts on Olam, almost majority still very positive on Olam and even more so after Temasek stays committed with the right issue. From this saga, big question mark over the analytical skills of the analysts. In Romance of the three Kingdoms, Pang Tong suggested 3 strategies to Liu Bei (best, neutral and worst) to capture Han Zhong from Liu Zhang. In the Olam saga, Olam has three strategies too (best, neutral and worst) to fight off Muddy Waters. Best strategy would be for Olam to sell off assets, restore debt level and gain back investors confidence. Neutral strategy would be ignored Muddy Waters, stay low and slow down the growth. Worst strategy would be to fight back. Guess what Olam did ? No prize in guessing the correct answer. Perhaps it is time for Olam management to really pick up some knowledge in strategy.
