FTSE STI closed 3,254.26, down 34.50 points or -1.05% with a total volume of 6.88b and total value of S$3.29b. Total number of advance vs decline was 114 vs 340. Of the 30 component index stocks, 2 closed positive, 5 unchanged and 23 closed negative. The 2 gainer component stocks were :-
1. JMH 400US$ -0.440
2. StarHub +0.060
The top 5 loser component stocks were :-
1. JSH 500US$ -1.200
2. Jardine C&C -0.740
3. UOB -0.430
4. CityDev -0.200
5. GLP -0.180
US markets fell at least 1% yesterday night after fear of Italy election outcome. Asian bourses reacted the same with across the board selling down. Nikkei -2.26%, SSE -1.40% and HSI -1.32%. STI fell 1.05% in slight heavy volume and value with only 2 of the 30 index stocks posted positive closing.
Italy election outcome, no party won majority and hence coalition Government has to form. The fear now for Europe #3 economy is can they form a coalition Government that can work inline with EU policy of imposing austerity to restructure economy. The anti-austerity campaign led by ex-PM managed to win a reasonable percentage caused fear to investors over the direction of EU economy which still in recession. Tonight, US Fed Chief will appear before Congress to give his testimony. The mentioning of the threat of the fiscal cliff (in which 1st March US will face across the board spending cut if nothing is carried out now) should strike another fear to investors.
STI was again in high volume with penny stocks play and on top of that, GIC selling stake in GLP at $2.60 has further added on the daily volume and value. The higher daily value seen today was merely due to the transaction of GLP share at $2.60. Singapore reported its January Industrial Production data this afternoon coming in at -0.4% on year vs +5.8% expected. That did not help sentiment either.
The much talk about correction is coming, another rebound is exit for short-term investors.
