FTSE STI closed 3,404.57, down 12.94 points or -0.38% with a total volume of 1.18b and a total value of S$1.21b. Total number of advance vs decline was 144 vs 287. Of the 30 component index stocks, 7 closed positive, 2 unchanged and 21 in the red. The top 5 gainer component stocks were :-
1. JMH USD +0.120
2. HongkongLand USD +0.100
3. DBS +0.060
4. JSH USD +0.050
5. Genting SP +0.035
The top 5 loser component index stocks were :-
1. Jardine C&C -0.490
2. SGX -0.190
3. SIA -0.150
4. CityDev -0.140
5. UOB -0.110
US markets fell at least 1% last Friday after the job data. Asian bourses taking the lead mostly fell with Nikkei -0.95%, SSE +1.88% reversing earlier loss and HSI -0.17%. STI fell 0.38% in typical daily volume and value with only 7 of the 30 index stocks registered gain.
US created 295,000 jobs last month far better than expectation of 240,000 and unemployment rate dropped to 5.5% from the month before of 5.7%. The strong set of data triggered fear of US Fed might rate hike in June and that sparked a global sell off. Apart from the negative sentiment from US markets last Friday, Japan released its 4Q GDP figure this morning coming below expectation with annualized growth of +1.5% down from previous reading of +2.2%. Good news was Japan is out of recession but the recovery was weaker than expected. Again, global markets selling off in fear of sooner rate hike is irrational with probably exception of US markets. It is the pace of the rate hike and not when and how much. For rest of the markets except US, any sell off due to fear of rate hike presents nothing but bargain opportunity.
STI in line with regional markets fell into the red trying to find a support around the 3,400 level. Apart from the blue chips being sold off, high-yield stocks like S-Reits also facing selling pressure due to none other than rate hike. To sell off STI due to fear of rate hike is never rational and logical, one thing for sure, the irrational and illogical only present bargain hunt opportunity in STI.
