FTSE STI closed 3,378.59, down 19.67 points or -0.58% with a total volume of 1.36b and a total value of S$1.22b. Total number of advance vs decline was 114 vs 309. Of the 30 component index stocks, 4 closed positive, 2 unchanged and 24 in the red. The 4 gainer component stocks were :-
1. CityDev +0.080
2. SIA +0.060
3. Capitaland +0.030
4. StarHub +0.030
The top 5 loser component stocks were :-
1. Jardine C&C -1.610
2. JSH USD -0.660
3. JMH USD -0.620
4. UOB -0.160
5. DBS -0.130
US markets sank more than 1.5% yesterday and Asian bourses were mostly in the red. Nikkei +0.31%, SSE +0.16% and HSI -0.75%. STI fell 0.58% in typical daily volume and value with only 4 of the 30 index stocks posted gain.
The fear of US Fed interest rate hike and strengthening of USD triggered a sell off in US markets in which both DJ and S&P500 eased all the gain for 2015. Most of Asian markets also fell into the red taking the cue from US markets except Nikkei and SSE as both were focus on their respective economic data. Japan released its machinery orders data falling 1.7% in January from previous month but the decrease was smaller than expected of 4.1%. China meanwhile released Retail Sales and Industrial Output data both missing forecast. Retail Sales grew 10.7% in the January-February period vs expectation of +11.7%. Industrial output rose annualized 6.8% in the period but was lower than the forecast of 7.8%. The weaker than expected data from China should further adding pressure for Chinese Government to roll out more monetary easing.
STI was in the red throughout as the fear of sooner than expected rate hike and strengthening of USD trigger funds outflow. The funds will return later to STI because as usual the analysis of is like always wrong. The index was pretty much weighed down by the Jardine group of shares and without those, the drop will be much smaller. While stock market movement is directed by hot money flowing in or out, the fundamental of Singapore economy so far remain unchanged. The selling down of stock prices will at one price present cheap bargain based on fundamental.
