FTSE STI closed 3,296.37, up 4.91 points or +0.15% with a total volume of 2.19b and a total value of S$1.32b. Total number of advance vs decline was 147 vs 265. Of the 30 component index stocks, 14 closed positive, 3 unchanged and 13 in the red. The top 5 gainer component stocks were :-
1. DBS +0.150
2. SingTel +0.100
3. StarHub +0.100
4. SIA +0.070
5. SembCorp +0.070
The top 5 loser component stocks were :-
1. JMH 400US$ -1.550
2. Jardine C&C -0.470
3. JSH 500US$ -0.360
4. SGX -0.060
5. SembMar -0.040
5. KepCorp -0.040
US markets fell average 1% last night giving up the rebound previous day due to corporate earning missing expectation and a big drag by Apple after its supplier gave a low forecast. Asian bourses were mostly in the red with Nikkei -1.22%, SSE +0.17% and HSI -0.26%. STI practically was flat in another thin volume and value day with 14 of the 30 index stocks posted gain.
Weak corporate earning, worries on the Boston bomb blast and continued drop in commodity price were the reason for US markets dropping. Is the drop justify ? Unfortunately, the answer is a YES. US has its own problem with the high unemployment rate, debt ceiling, budget spending cut, etc and despite all those US markets past weeks were hitting new 5 years high for nothing. Now it is reality check time without any doubts. Like herd mentality, global markets practicing the norm and followed and that the reason for global markets falling also. Asian economy fundamental is much much stronger than US and Europe, while the current high stock prices might be running ahead of the fundamental but a pull back definitely bring the stock prices back to a more attractive level.
STI again caught in uncertainties between global events and mixed corporate earning which eventually caused investors to do quick trading thereby capping any upside and downside for the moment. Catalyst is what required to have a stronger direction.
