FTSE STI closed 3,345.11, up 46.75 points or +1.42% with a total volume of 1.41b and a total value of S$1.15b. Total number of advance vs decline was 254 vs 131. Of the 30 component index stocks, 23 closed positive, 4 unchanged and 3 in the red. The top 5 gainer component stocks were :-
1. UOB +0.580
2. OCBC +0.320
3. DBS +0.280
4. JMH 400USD +0.210
5. Jardine C&C +0.170
The 3 loser component stocks were :-
1. CapitaMall -0.050
2. StarHub -0.010
3. ComfortDelGro -0.010
US markets rallied average 1.20% yesterday. Asian bourses were mostly positive for the day with Nikkei +1.67%, SSE -2.36% and HSI +0.65%. STI rose 1.42% in typical volume and value with 23 of the 30 index stocks posted gain.
US ADP data came in better than expected yesterday coupling with the easing of concerns over oil price and Greece issue helped US markets to rebound for the first time in 2015. Asian markets taking the cue were mostly higher for the day except for SSE fell into the red on profit taking. With a strong ADP number, investors are anticipating a strong non-farm payroll tomorrow to indicate US labor market is strengthening. Another event yesterday was the released of CPI for eurozone which fell 0.2% raising the probability of deflation in eurozone. As such investors are seeing ECB will act sooner than expected. Oil price though managed to rebound back to above US$50/barrel for Brent crude, there is still no sign of a bottom.
STI rallied more than 1% to close above the 3,300 level as the bargain hunting on the blue chips with bank and Jardine group of stocks lifted the index. Broader market was also possible with those stocks that are supposed to releasing their earning within the next 1 to 2 weeks moving higher up. Small cap and penny stocks also attracted higher activity as punters coming back for the quick punt. 2 days ago was the second big drop for STI in reaction to oil price but it never hit the low of the previous panic drop which is in general a good sign. Market could be facing another and the final drop.
