FTSE STI closed 3,2267.48, up 8.91 points or +0.27% with a total volume of 5.18b and a total value of S$1.22b. Total number of advance vs decline was 258 vs 140. Of the 30 component index stocks, 16 closed positive, 7 unchanged and 7 closed in the red. The top 5 gainer component stocks were :-
1. OCBC +0.150
2. DBS +0.130
3. SingTel +0.040
4. ST Engg +0.040
5. CityDev +0.030
5. UOB +0.030
5. StarHub +0.030
The top 5 loser component stocks were :-
1. Jardine C&C -0.510
2. JMH 400US$ -0.300
3. JSH 500US$ -0.190
4. KepCorp -0.050
5. SPH -0.010
5. SembCorp -0.010
5. CapitaMall -0.010
US markets closed at least +0.60% last Friday ahead of Cyprus's deadline today. Asian bourses reacted first with news that Cyprus finally managed to get the bailout fund to avoid default and kick out of Euro. Nikkei +1.69%, SSE -0.07% and HSI +0.61%. STI rose 0.27% in medium volume but thin value. 16 of the 30 index stocks managed to post gain.
Cyprus get the bailout fund at the 11th hour but not without condition or victim to be exact. Cyprus has to shut down its second largest bank in which investors mostly Russians will loose their investment in the bank in order to secure the bailout fund from EU. The on the surface effect is Cyprus will not be bankrupt and get kick out of Euro. However, the underlying of that might be different story as it already involved victims, Russian investors. Though markets were up on that news but reaction was pretty much muted. This could be the case that Cyprus issue was too small to cause a big concern and even if it failed to get the bailout fund and shipped out of the Euro, this might not have a deadly impact on the EU zone as a whole.
Singapore reported its February CPI this afternoon coming in at +4.9% ahead of the expected of +4.1%. With inflation still at stubborn high level, SGD is unlikely to weaken. Majority of the activity in STI was again the penny stocks. Momentum of another upthrust for the penny can be observed but still not at the stage whereby every Tom, Dick and Harry will jump in to chase in fear of missing out. This is the early phase of accumulation for the penny before the next big movement, no anyone can observe or realize that and pick the correct one to accumulate will see the reward next.
