FTSE STI closed 3,411.50, up xx.xx points or +1.22% with a total volume of 1.80b and a total value of S$1.57b. Total number of advance vs decline was 324 vs 167. Of the 30 component index stocks, 25 closed positive, 2 unchanged and 3 in the red. The top 5 gainer component stocks were :-
1. JMH USD +1.370
2. Jardine C&C +0.920
3. JSH USD +0.520
4. CityDev +0.210
5. UOB +0.170
The 3 loser component stocks were :-
1. SPH -0.010
2. Noble -0.005
3. Genting -0.005
US markets rallied in the last 2 hours of trading to close average +1.5%. Asian markets were all positive for the day with Nikkei +1.05%, SSE +0.30% and HSI +1.34%. STI rose 1.22% in higher volume and value with 25 of the 30 index stocks posted gain.
US and European markets were the first to react to ECB more than expected QE program and Asian bourses reacted positively too despite China HSBC flash PMI data for January still in contraction range. ECB unveiled a 60b euro bond buying program that will start from March 2015 till September 2016. This was more than what market expecting (50b euro) and that really cheered global stock markets. As mentioned a more aggressive QE will inflate global stock market but whether can it eventually achieve it's aim of fighting Europe deflation that will be another question. US Fed after 3 round of QEs still could not get inflation to hit target and BOJ after sales tax hike and expanding its QE still have to cut its inflation forecast. Will ECB QE really work ? One thing good about ECB QE apart from inflating stock markets is it will mitigate the effect of US Fed rate hike this year. Another news that caused instant reaction to oil price today was the passing away of Saudi's king.
Global money is the supply, global spending is the demand, excessive of money printing led to oversupply in which demand failed to catch up, result is global deflation but the real evil is failing to realize the problem.
STI in line with global market rallied and broke the 3,400 level, hitting a new 52-week high as investors bargain hunting and short-covering. High-yield stocks are again the one to watch as ECB's QE like the numerous QE by US Fed and BOJ in the past will lead to investors searching for yield return. The talk of the day for Singapore market is Keppel Corp announcing its intention to privatize Keppel Land by offering to buy out remaining of Keppel Land share at a price of $4.38 to a possible of $4.60/share. That piece of news led to a pop in price of almost all the property counters in STI as investors trying to grab a pie hoping that one of those property counter will be the next to be privatized. No point second guess, the next one will be United Engineers !
