FTSE STI closed 3,395.27, down 20.26 points or -0.59% with a total volume of 1.24b and a total value of S$934M. Total number of advance vs decline was 167 vs 245. Of the 30 component index stocks, 6 closed positive, 4 unchanged and 20 in the red. The top 5 gainer component stocks were :-
1. Ascendas Reit +0.050
2. CapitaMall +0.020
3. DBS +0.010
4. ST Engg +0.010
5. HPH Trust USD +0.005
5. Noble +0.005
The top 5 loser component stocks were :-
1. JMH USD -1.100
2. JSH USD -0.430
3. SIA -0.180
4. CityDev -0.160
5. Jardine C&C -0.150
US markets fell again yesterday and Asian bourses were mostly in the red with Nikkei +0.26%, SSE -0.92% and HSI -1.11%. STI mostly stayed in the red for the day closing -0.59% in a slightly thinner daily volume and value with only 6 of the 30 index stocks posted gain.
US ADP figure came in slightly below expectation and investors rather taking profit while waiting for tomorrow non-farm payroll data. The event that caught investors attention today was China in which during the annual National People's Congress, Premier Li Keqiang announced a GDP growth target of 7% for 2015 as compared to 7.5% for 2014. The lowered forecast caused some concerns triggering selling off in most regional markets. The lower forecast is not something unexpected as China undergoing reform in its economy is searching for slow but quality growth. Hence, the selling in regional markets or global markets due to that is an over-reaction. Another event tonight will be ECB in which most expecting more detail will be announced regarding the ECB QE of bond buying program, in particular when it will start.
STI tracking regional markets failed to maintain gain as selling sentiment dragged down the index. While the broader market indicating selling, investors in particular mid to long term should look at the fundamental and grab on any potential opportunity.
