FTSE STI closed 3,269.13, up 12.66 points or +0.39% with a total volume of 2.79b and a total value of S$1.12b. Total number of advance vs decline was 233 vs 152. Of the 30 component index stocks, 18 closed positive, 5 unchanged and 7 in the red. The top 5 gainer component stocks were :-
1. Jardine C&C +1.00
2. JSH 500US$ +0.400
3. JMH 400US$ +0.170
4. HKLand US$ +0.160
5. UOB +0.080
The top 5 loser component stocks were :-
1. CityDev -0.080
2. SIA Engg -0.050
3. KepCorp -0.050
4. SingTel -0.010
5. GoldenAgr -0.010
5. CapitaMall -0.010
US markets closed down average 0.4% due to concern of Cyprus bailout. Majority of Asian bourses managed to rebound today after yesterday panic sold down. Nikkei +2.03%, SSE +0.78% and HSI -0.19%. STI closed +0.39% in thin volume and value with 18 of the 30 index stocks posted gain.
The reaction on Cyprus bailout no doubt created an over reacted on yesterday. The sky is till not clear on Cyprus bailout with EU demand on the condition to be met (5.6b euro revenue tax) before releasing the 10b euro to Cyprus. It might take few days or weeks before everything are ironed out but nevertheless it is not a situation to be overly pessimistic about given the economy scale of Cyprus to whole of Europe. Markets in general rebounded but still lack the positive catalysts to move higher as investors now staying sideline waiting for a clearer signals, Cyprus vote on deposit tax. Another event to watch this week is US FOMC meeting. Market rally due to outcome of FOMC is not a signal to chase, market pull back due to FOMC meeting outcome is every opportunity to accumulate.
STI activity especially penny stocks have toned down a lot given the thinner in volume. That is not a bad sign either as this will stabilize the market when punters all staying sideline. Bottoming should be around within the next few weeks. Current market movement is suitable for slowly accumulation on weakness, not punting or scraping the barrel for that tiny profit.
