FTSE STI closed 3,291.08, down 20.29 points or -0.61% with a total volume of 2.89b and a total value of S$1.60b. Total number of advance vs decline was 177 vs 228. Of the 30 component index stocks, 7 closed positive, 2 unchanged and 21 in the red. The top 5 gainer component stocks were :-
1. OCBC +0.160
2. StarHub +0.040
3. Kep Corp +0.030
4. SPH +0.030
5. CapMallsAsia +0.020
5. HKLand US$ +0.020
The top 5 loser component stocks were :-
1. Jardine C&C -0.690
2. UOB -0.420
3. JMH 400US$ -0.350
4. DBS -0.310
5. JSH 500US$ -0.170
US markets fell at least 1% last Friday and Asian bourses were mostly down for the day. Nikkei -3.72%, SSE +0.02% and HSI -0.49%. STI like regional bourses fell 0.61% in a daily volume and value slightly thinner than past days. Only 7 of the 30 index stocks registered positive closing.
Market sentiment ruled the day for regional bourses. Strengthening of Japanese Yen further encouraged more selling pressure on Nikkei, China official PMI for May came in better than expected over the weekend but the HSBC final version indicating there was a contraction and value was even lower than the flash data a week ago. A more positive news was Eurozone PMI for May rose to 48.3 from April's 46.7 but that didn't ease much on the selling pressure. The main reason for the selling is none other than concern of US Fed tapering stimulus. The tapering of stimulus should be a correct and right move, in a way to burst the bubbles before it getting out of control. Global stock markets are taking this excuse to adjust back to their fundamental, there is nothing to be pessimistic about in this selling.
STI continued the selling from last May with probably only those micro penny stocks are being spared the selling pressure. Following the trend and sentiment is a sell but flipping over the half-emptied glass of water will be a half-filled glass of water. It is the ability to think rationale against the irrationale matters the most.
