FTSE STI closed 3,386.16, up 24.41 points or +0.73% with a total volume of 1.20b and a total value of S$1.18b. Total number of advance vs decline was 229 vs 230. Of the 30 component index stocks, 22 closed positive and 8 in the red. The top 5 gainer component stocks were :-
1. HongkongLand USD +0.180
2. OCBC +0.130
3. SIA +0.110
4. SingTel +0.100
5. CapitaMall +0.090
The top 5 loser component stocks were :-
1. JMH USD -0.440
2. JSH USD -0.350
3. Jardine C&C -0.150
4. CityDev -0.070
5. ComfortDelGro -0.030
US markets reversed earlier loss and rallied at least 1% yesterday. Asian bourses were mostly positive for the day with Nikkei -0.35%, SSE +0.15% and HSI +1.45%. STI in line with regional markets jumped 0.73% in slightly thinner daily volume and value with 22 of the 30 index stocks posted gain.
US markets rallied after US Fed did the trick after the FOMC meeting. The "patient" word was gone, the concern of rate hike before June was eased after US Fed said it is highly unlikely to raise rate in April, economic growth forecast was lowered to 2.5% from 2.8%, inflation forecast lowered to 0.7% from 1.3% and the Fed fund rate projection for this and year next. That has sort of get rid of certain level of uncertainties which markets do not like. The forecast of Fed fund rate for this year was lowered by 50 basis point from the previous forecast, ranging from 0.50% to 0.75%. Investors took it that the 2 possible dates for US Fed to hike rate shall be June and September. Asian markets mostly taking the cue from US markets rallied traded positive with exception for Nikkei due to Yen strengthening. The stock markets rebound look pretty much a relief rather than change of trend though.
STI was positive for the day in particular most of the S-Reits rebounded as uncertainties over Fed rate hike eased. However, the rebound looked like an oversold or relief rebound as there wasn't any strong indication that the short-term downside biased was invalidated. The event that could cause STI to have knee-jerk reaction should be happening within the next few days and that shall be one opportunity that could not be missed to bargain hunt.
