FTSE STI closed 3,421, down 14.36 points or -0.42% with a total volume of 1.07b and a total value of S$1.28b. Total number of advance vs decline was 224 vs 214. Of the 30 component index stocks, 15 closed positive, 1 unchanged and 14 in the red. The top 5 gainer component stocks were :-
1. Jardine C&C +0.400
2. DBS +0.200
3. JSH USD +0.160
4. SGX +0.060
5. CityDev +0.050
5. OCBC +0.050
The top 5 loser component stocks were :-
1. JMH USD -1.00
2. SIA -0.260
3. HongkongLand USD -0.180
4. SingTel -0.120
5. KepCorp -0.100
US markets closed at least +0.60% last Friday and Asian bourses were mostly positive for the day with Nikkei +0.73% hitting 15-year high, SSE closed for CNY holiday and HSI +0.02%. STI opened positive but pared gain to close -0.42% in typical daily volume and value with 15 of the 30 index stocks posted gain.
News that EU and Greece has agreed on an extension of 4-month to its debt triggered US markets to a positive closing last Friday with DJ and S&P500 hitting another record high. However, that was half of the news only as Greece has till today to submit the list of reform measures to creditors and should the creditors reject that, the extension will no longer valid. Should everything get the green light, it is only a 4-month extension and the debt issue will resurface again later. Asian markets were mostly positive for the day taking cue from positive US markets and the Greece news. The CNY rally which most anticipated also didn't quite materialize either. Event to look out for this week will be the 2-days US Fed testimonial in front of US lawmakers and investors will be hunting for cue on when will be the rate hike.
STI started positively but gave up the gain as regional markets thought mostly positive but lack the CNY rally momentum. That triggered traders to take profit in the afternoon session causing the index to dip into the red. Investors also focusing on the Singapore Budget. So far the 4 major themes for this year budget are :-
1. Developing skills for the future by creating a meritocracy of skills, not grades
2. Restructure the economy to support the next generation of businesses
3. Investing in economic and social infrastructure including quality healthcare
4. Strengthening retirement adequacy and giving more support for the middle income
The detail will be much in focus in particular point 2 and 3 as probably can view that as some sort of stimulus.
