FTSE STI closed 3,089.93, up 15.62 points or +0.51% with a total volume of 2.1b and a total value of S$1.52b. Total number of advance vs decline was 179 vs 213. Of the 30 component index stocks, 20 closed positive, 1 unchanged and 9 in the red. The top 5 gainer component stocks were :-
1. Jardine C&C +0.700
2. DBS +0.340
3. UOB +0.250
4. OCBC +0.170
5. ST Engg +0.100
The top 5 loser component stocks were :-
1. JMH 400US$ -1.870
2. JSH 500US$ -0.530
3. SPH -0.040
4. CapMallsAsia -0.040
5. Wilmar -0.030
US markets closed on average a drop of 1% rebounded from earlier loss of at least 1.5%. Asian bourses continued the volatility and closed mixed for the day. Nikkei -0.72%, SSE -0.18% and HSI +0.21%. STI opened lower but managed to recover and close +0.51% in thing volume and value day. 20 of the 30 index stocks registered positive closing.
Today theme was China credit squeeze which caused SSE dropped another 4% but managed to recover to just -0.18%. The China credit squeeze on the surface looked bad but it might not be should one take a long term view. China is into its new reformed economic model which focused on consumer services, low but sustainable growth and as such its financial system will have to reform to get rid of those past "shadow borrowing" and illegal monetary activities. PBOC unwilling to inject liquidity to the system could be seen as a measures to reform the sector. Short-term wise over-reaction is very possible.
STI opened lower but managed to recover the earlier loss in the afternoon after SSE recovered, HSI closing positive and European bourses, US future all showing rebound from past days of selling. Short-covering and bargain hunting were seen for the rebound. Lots are trying to second guess where STI support will be. Bother not of where the figure will be, look at the fundamental of the stock and the pricing should one need to bargain hunt.
