FTSE STI closed 3,284.35, down 24.57 points or -0.74% with a total volume of 1.74b and a total value of S$1.24b. Total number of advance vs decline was 124 vs 270. Of the 30 component index stocks, 6 closed positive, 2 unchanged and 22 in the red. The top 5 gainer component stocks were :-
1. Jardine C&C +0.480
2. JSH 500US$ +0.250
3. JMH 400US$ +0.210
4. SembCorp +0.040
5. StarHub +0.020
The top 5 loser component stocks were :-
1. UOB -0.200
2. OCBC -0.190
3. DBS -0.140
4. SGX -0.130
5. HKLand US$ -0.090
5. GLP -0.090
US markets closed positive with tech stocks leading the upside in a day in which mixed corporate earning and a weak home sales data dominated the trading activities. Asian bourses were on profit taking with all ending in the red. Nikkei -0.29%, SSE -2.57% and HSI -1.08%. STI in line with regional bourses finished -0.74% in a very thin volume and value day. Only 6 of the 30 index stocks managed to register positive closing.
China reported its HSBC flash PMI for April coming in at 50.6 vs previous month of 51.6 and missing expectation of 51.5. This set of data has caused concern of China economic growth which dragged down Asian bourses. Well, perhaps it is time to get use to China not having a fast growth and not putting up high expectation on it. Moreover, current global economy situation is very straight forwards, each individual nation has to do its own part to boost its economy growth and not trying to rely on other. With that mindset, investors should not be disappointed with the weak set of economic data.
Singapore released its March CPI coming in at +3.5% down from +4.9% in February and lower than the expectation of +3.7%. A slight relief but still not a good set of inflation number in which then nation still feeling the pressure of high cost of living. STI index stocks and selective blue chips were weak on the day meeting with profit taking but the broader market still pretty much muted. The defensive and high-yield stocks still resilient.
Most of the investors should be watching tonight US corporate earning in which Apple will be announcing its earning. Expectation is that it will post a weak set of data and since Apple being heavy on Nasdaq and S&P500, the impact will weigh down the index. Note, global economy is not all about Apple and fact was there since last years when Apple lost out the global market share in smartphone that the growth momentum was put in question. Technology is about quality and not quantity and should investors be able to think from that perspective, Apple's earning even if it misses expectation should not impact the stock market as a whole. Too much hype and overly optimistic on Apple will do no good and should market drops tomorrow due to Apple earning, that will be opportunity to bargain hunt any fundamental strong stocks except Apple.
