FTSE STI closed 3,269.95, up 8.83 points or +0.27% with a total volume of 7.38b and a total value of S$1.80b. Total number of advance vs decline was 227 vs 207. Of the 30 component index stocks, 20 closed positive, 5 unchanged and 5 closed negative. The top 5 gainer component stocks were :-
1. Jardine C&C +0.440
2. JSH 500US$ +0.180
3. OCBC +0.120
4. ST Engg +0.120
5. Wilmar +0.060
The top 5 loser component stocks were :-
1. JMH 400US$ -0.810
2. UOB -0.120
3. SIA -0.030
4. SingTel -0.030
5. GLP -0.020
US markets closed positive with at least 1% gain and together with the day before gain pretty much recovered from the more than 1.5% drop 2 days ago. Asian bourses ended the month of February closing positive with Nikkei +2.71%, SSE +2.26% and HSI +1.96%. STI rose 0.27% in another heavy volume but thin value day. xx of the 30 index stocks registered positive closing.
It was the solid housing data and US Fed Chief second day testimony before Congress that resulted in the upward movement of the market. Baring all those, the US sequestration issue still yet to be solved in which tomorrow will be the deadline. Investors could be having low or no expectation from the Congress in resolving the issue. Low or no expectation is one issue but the impact of that will be another thing. Do not underestimate the impact of the sequestration.
STI again dominated by penny plays and some month end window dressing. This is the time when investors have to start taking cautious approach to the market as couple of events could just tip the market for a correction.
