FTSE STI closed 3,294.14, down 29.99 points or -0.90% with a total volume of 995M and a total value of S$881M. Total number of advance vs decline was 111 vs 321. Of the 30 component index stocks, 4 closed positive and 26 in the red. The 4 gainer component stocks were :-
1. Ascendas Reit +0.030
2. HongkongLand USD +0.030
3. CapitaMall Trust +0.020
4. GoldenAgri +0.005
The top 5 loser component stocks were :-
1. Jardine C&C -0.790
2. JSH 500USD -0.640
3. JMH 400USD -0.350
4. DBS -0.320
5. UOB -0.260
US markets sank at least 1% last Friday and Asian bourses were mostly in the red with Nikkei -1.57%, SSE +0.53% and HSI -0.95%. STI in line with most regional bourses fell 0.90% in thinner volume and value than past days with only 4 of the 30 index stocks managed to register positive closing.
The plunge in oil price caused US markets to fell more than 1%. Asian bourses taking the lead also got off to a sell off start but only SSE managed to reverse those loss to close positive. Without any surprise PM Shinzo Abe's party won the majority of the election last Sunday but that has no impact on Nikkei as Tankan survey showed that Japan 4Q manufacturing sentiment worsens. Crude oil price did rebound in the afternoon and probably should be seeing some rebound on US markets tonight. Event for this week will be the US Fed FOMC meeting on Tuesday and Wednesday in which investors will be looking at US Fed whether the current crash in oil price will change its mind on interest rate hike. For oil price, people are getting irrational negative of it and it is this that a bottom will occur which most will be missed.
STI dropped below 3,300 level as broad market sell off led by oil-related stocks in reaction to the plunge in oil price. Another possibility was fund managers' window dressing for year end ended last Friday and hence not much support for the counters. While there is still some panic in the oil price as investors and analysts are trying to second guess will there be another crash coming soon, the possibility of a sharp rebound next cannot be ruled out.
