FTSE STI closed 3,248.92, up 60.88 points or +1.91% with a total volume of 1.95b and a total value of S$1.38b. Total number of advance vs decline was 306 vs 104. Of the 30 component index stocks, 28 closed positive and 2 in the red. The top 5 gainer component stocks were :-
1. JMH 400US$ +1.340
2. Jardine C&C +1.100
3. UOB +0.790
4. OCBC +0.230
5. DBS +0.170
5. Kep Corp +0.170
5. SingTel +0.170
The 2 loser component stocks were :-
1. JSH 500US$ -0.200
2. THBEV -0.005
US markets closed flat after US Fed minutes but Asian bourses rallied for the day. Nikkei +0.39%, SSE +3.23% and HSI +2.55%. STI in line with regional bourses rose 1.91% in a slightly heavier volume and value than past days. 28 of the 30 index stocks posted positive closing.
US Fed minutes for last month FOMC meeting indicating that 1/2 of the members were in consent of tapering and that sent US markets gave up earlier gain to close flat. However, the statement from US Fed Chairman Ben Bernanke on US Fed will maintain accommodative stimulus policy sent investors cheering that tapering might not happen so soon, causing US future to rebound and Asian markets were the first to react to it. BOJ concluded its 2-days meeting maintaining status quo on its stimulus policy and at the same time upgraded Japan economy to recovery.
STI was on a higher volume and value for the day as short covering and bargain hunting coming in for the blue chips and high-yield stocks. STI also moved above the much talk about 3,200 level. A level to most is if can sustain will see more upside. That is from technical point of view. From fundamental point of view, that number is pretty much meaningless. As a reminder, focus on earning rather than chart reading.
