FTSE STI closed 3,432.78, down 27.01 points or -0.78% with a total volume of 1.45b and a total value of S$1.11b. Total number of advance vs decline was 111 vs 349. Of the 30 component index stocks, 6 closed positive, 6 unchanged and 18 in the red. The top 5 gainer component stocks were :-
1. SGX +0.110
2. SPH +0.050
3. StarHub +0.050
4. Wilmar +0.020
5. ST Engg +0.010
The top 5 loser component stocks were :-
1. JMH USD -0.930
2. JSH USD -0.440
3. HongkongLand USD -0.250
4. CityDev -0.180
5. UOB -0.170
US markets fell at least 0.2% yesterday and Asian bourses were all in a sea of red with Nikkei -1.23%, SSE -2.75% and HSI -1.27%. STI in line with regional markets fell 0.78% in thin daily volume and value with only 6 of the 30 index stocks managed to register gain.
Weak ADP job data and comment from US Fed Chairman regarding equity valuation being expensive triggered the selling off. That effect spread to Asian markets as investors taking profit and stay sideline. The weak ADP data indicated a weak labor market thereby raising the concern of US economy growth is facing slow down. However, should tomorrow non-farm payroll data also come in weak, chances are US Fed might delay interest rate hike. Global markets are now facing either a slow down in global economy which should cause stock markets to correct or a relief that interest rate hike might not be as soon as in June.
STI continued the correction breaking the 3,450 level and heading towards the 3,410 region. Though the market looked like panic selling but the actual fact was due to the thin volume with lesser buyers, prices can be easily knocked down without any volume. That is not a case of the usual panic selling.
