FTSE STI closed 3,376.04, up 13.27 points or +0.39% with a total volume of 1.06b and a total value of S$901M. Total number of advance vs decline was 155 vs 284. Of the 30 component index stocks, 15 closed positive, 5 unchanged and 10 in the red. The top 5 gainer component stocks were :-
1. Jardine C&C +0.610
2. JSH USD +0.510
3. SIA +0.410
4. JMH USD +0.190
5. UOB +0.190
The top 5 loser component stocks were :-
1. HongkongLand USD -0.120
2. SGX -0.060
3. StarHub -0.040
4. SembMar -0.030
5. ST Engg -0.020
5. Noble -0.020
US markets fell at least 0.4% last Friday but Asian bourses were mostly positive for the day with Nikkei -0.04%, SSE +2.24% at 5-year high and HSI +0.53%. STI after past days of selling down managed to rebound with a closing of +0.39% but with thinner daily volume and value. 15 of the 30 index stocks registered positive closing.
US markets continued to be weighed down by stronger USD and report on higher US oil production coupled with the uncertainty of when US Fed with hike interest rate. For Asian markets, it was comment by China Premier Li Keqiang that China has room to maneuver policy and investors taking that as more monetary easing will be coming from China. That helped to lift most of Asian markets rebound from last week of selling. Investors this week will be focusing on the Tuesday and Wednesday US Fed FOMC meeting to gauge when Fed will do a rate hike. An as usual comment of patient and considerable time might deviate the potential of a June rate hike but a change of tone and language might indicate a possibility of rate hike in June. Perhaps, the best scenario is for Fed to do a rate hike soonest possible to get rid of the uncertainty surrounding the global stock markets.
STI though weighed down by O&G stocks due to sliding crude oil price managed to stage a rebound from last week selling off. However, the rebound lack the volume and that could mean the strength of the rebound could be weak. The cautious bargain hunting and some short-covering ahead of US Fed FOMC meeting signals the cautious, nervous and uncertainty in the STI. While the activity in the blue chips stayed pretty muted, punters were switching to punting of penny stocks for quick profit. Mid and long term investors should use the current uncertainty and volatility in the market to plan ahead of what to accumulate ahead of next month corporate earning in particular S-Reits which could be experiencing more selling down in the next few weeks and that will present will good bargain hunting opportunity.
