FTSE STI closed 3,258.57, down 9.08 points or -0.28% with a total volume of 5.49b and a total value of S$1.31b. Total number of advance vs decline was 257 vs 164. Of the 30 component index stocks, 11 closed positive, 6 unchanged and 13 in the red. The top 5 gainer component stocks were :-
1. JSH 500US$ +0.200
2. HKLand US$ +0.150
3. SIA +0.100
4. CityDev +0.050
5. Wilmar +0.040
5. StarHub +0.040
The top 5 loser component stocks were :-
1. Jardine C&C -0.440
2. JMH 400US$ -0.430
3. UOB -0.160
4. OCBC -0.090
5. SingTel -0.050
5. SGX -0.050
5. KepCorp -0.050
5. DBS -0.050
US markets closed negative with at least 0.60% drop after weekly jobless claims went up investors nervous about the Cyprus issue. Asian bourses were mostly down for the day with Nikkei -2.35%, SSE +0.17% and HSI -0.50%. STI flat with slight red with volume slightly higher but daily value still thin. Only 11 of the 30 index stocks managed to register positive closing.
EU through ECB sent out bailout ultimatum to Cyprus and should Cyprus fails to meet the target specified on next Monday, it risks exit from Euro. Cyprus latest attempt of talk with Russia also failed. Should the scenario of Cyprus could not get a bailout deal from EU, out it will go from Euro. That perhaps might create a knee-jerk panic reaction to stock markets next week but the option of Cyprus leaving Euro might not be bad after all for both Cyprus and EU. Cyprus exit and devalues its own currency should help it to restructure from current debt issue. As for EU, such a move would be considered as throwing out the bad apples and strengthen the Euro in general. Panic reaction next week will be the dying opportunity to bargain pick, be mentally prepared to pounce should there be any panic selling.
For STI, blue chips were pretty much lack of direction as majority of the activities again coming from the penny stocks. Whether it was the act of punters or speculators spiking up the penny stocks or real buying, the price of the fundamentally more sound penny is attractive enough to slowly accumulate. For penny, must have the patience and holding power to get the rewards.
