FTSE STI closed 3,229.55, up 46.11 points or +1.45% with a total volume of 1.68b and a total value of S$1.25b. Total number of advance vs decline was 277 vs 115. Of the 30 component index stocks, 26 closed positive, 2 unchanged and 2 in the red. The top 5 gainer component stocks were :-
1. JMH 400US$ +1.190
2. Jardine C&C +1.080
3. CityDev +0.340
4. JSH 500US$ +0.290
5. UOB +0.210
The 2 loser component stocks were :-
1. THBEV -0.005
2. GoldenAgr -0.005
US markets rose at least 0.7% last night thought markets opened with at least 1% gain. Asian bourses however were mostly down for the day with Nikkei -0.20%, SSE +0.41% and HSI 0%. STI performed better than regional bourses with a +1.45% closing in very thin volume and value day. 26 of the 30 index stocks posted positive closing.
It was a day of cautious and nervous as investors awaiting for the outcome of US Fed FOMC meeting which starts today. Most are expecting US Fed could calm the recent nervous markets regarding the tapering off but US Fed according to past history will just maintain its usual "neutral" tone on warning against the risk of the stimulus that comes along while it is still keeping in place to support the economy in particular unemployment rate. It is rather not US Fed that calm the market but rather investors themselves psychologically did the trick to calm the markets after markets over-reacting to the tapering.
STI rose at least 1% mainly due to short-covering and punters trying to leverage on possible good news from US Fed that will jack up the markets. The thin volume and value clearly indicating most still cautious ahead of the FOMC meeting. Investors should look beyond FOMC meeting and set an eye on next week end of the month 1H2013 window dressing.
