FTSE STI closed 3,272.62, down 39.85 points or -1.20% with a total volume of 1.54b and a total value of S$1.26. Total number of advance vs decline was 87 vs 396. Of the 30 component index stocks, all closed in the red.
The top 5 loser component stocks were :-
1. JSH 500USD -0.600
2. UOB -0.290
3. JMH 400USD -0.190
4. Jardine C&C -0.180
5. DBS -0.170
US markets ended mixed yesterday and Asian bourses were all under selling pressure for the day. Nikkei -0.23%, SSE -1.80% and HSI -0.91%. STI continued the slide with another 1.20% drop in higher volume and value with all the 30 index stocks posted loss.
Disappointed industrial output data and the fear ahead of US Fed FOMC meeting caused US markets to end mostly in the red led by tech stocks. For Asian, it was selling right from the start as funds starting to sell in fear of sooner than expected rate hike. What investors want to hear from the Fed which starts its 2-days FOMC meeting today is a define and certain decision of when rate hike and not another of those uncertain. Should US Fed continue the uncertain on when will be the first rate hike, can expect global markets undergoing the overdue correction. While correction presents bargain opportunity for Asia markets, it is not for US market.
STI was undergoing selling across the board and breaking the support at 3,280. This was mainly due to funds exiting; all rushing for the exit door at the same time. The selling from the funds especially to those fundamentally strong stocks should present good bargain hunting opportunity. What might be seeing is a possible correction of 10% for those S-Reits from their respective recent high.
