FTSE STI closed 3,291.81, up 43.55 points or +1.34% with a total volume of 6.02b and a total value of S$1.55b. Total number of advance vs decline was 238 vs 223. Of the 30 component index stocks, 2 unchanged, 3 closed negative and 25 closed positive. The top 5 gainer component stocks were :-
1. Jardine C&C +3.820
2. JMH 400US$ +1.500
3. JSH 500US$ +1.100
4. DBS +0.210
5. CityDev +0.190
5. KepCorp +0.190
The 3 loser component stocks were :-
1. SembCorp -0.040
2. SIA Engg -0.020
3. ComfortDelGro -0.005
US markets posted average 1% gain with DJ rocketed to new record high. Asian bourses taking that sentiment and all closed positive with average 1% gain. Nikkei +2.13%, SSE +0.90% and HSI +0.96%. STI rose 1.34% with slight higher volume and still the same thin value. 25 of the 30 index stocks posted gain.
Fuel by optimism of stimulus while the macro underlying issue of economy still remain, US DJ breaking 5 years ago record high (before the crash). That sentiment no doubt spreading to Asian bourses causing regional bourses to close on average 1% gain. STI not under-performing rose 1.34% but mainly due to contribution from the Jardine group of stocks. Again the higher volume but thin value indicating penny stocks dominating. Optimism with US market hitting record high ? Better not, better maintain cautiously optimistic despite so many analysts reporting stocks valuation are still attractive. Ever wonder why they never mentioned or strongly stressed in 2011 and 2012 when global markets were been sold down with all the macro issues. None of those macro issues till today is totally resolved !
Stress again, a rally in market due to optimism of stimulus can never sustain the run up as the underlying fundamental still remain the same.
