FTSE STI closed 3,223.87, down 35.38 points or -1.09% with a total volume of 1.24b and a total value of S$966M. Total number of advance vs decline was 98 vs 358. Of the 30 component index stocks, 3 closed positive and 27 in the red. The 3 gainer component stocks were :-
1. ComfortDelGro +0.040
2. SIA +0.020
3. ThaiBev +0.005
The top 5 loser component stocks were :-
1. JMH 400USD -0.810
2. Jardine C&C -0.650
3. JSH 500USD -0.380
4. UOB -0.300
5. Kep Corp -0.180
US markets crashed 2% yesterday and Asian bourses were all in the red for the day. Nikkei -1.15%, SSE -0.62% and HSI -1.89%. STI fell 1.09% in thin volume and value with only 3 of the 30 index stocks posted gain.
US markets gave back all the gain the day before recoding probably the biggest drop of the day for this year. The reason behind the selling down was worries of global economy slowdown as Germany latest economic data continued to disappoint. Germany being the linchpin of Euro and its shrinking economy could even drag Euro zone back to recession. Hong Kong Government has cancelled the scheduled talk with protesters today and the protesters might be resume the demonstration over the weekend. That further added some pressure to the already nervous market. Can China or Hong Kong Government do something to prevent another possible of those Tiananman ? Asian bourses taking the cue faced selling pressure and ended all in the red. Will US rebound tonight or will it continue the drop is worrying investors now.
STI gave back all the gain yesterday, closing at day low and it is the 3rd time it tested the 3,220 support. Should the continue negative events drag on, that support could be broken next. Sentiment wise, it is biased towards the downside but not all markets deserve the big drop, investors have to look at the valuation and underlying fundamental. STI definitely is not one of those.
