FTSE STI closed 3,452.01, up 19.23 points or +0.56% with a total volume of 1.22b and a total value of S$991M. Total number of advance vs decline was 236 vs 200. Of the 30 component index stocks, 15 closed positive, 6 unchanged and 9 in the red. The top 5 gainer component stocks were :-
1. JMH USD +1.300
2. JSH USD +0.650
3. Jardine C&C +0.510
4. DBS +0.200
5. SGX +0.070
The top 5 loser component stocks were :-
1. Sembcorp -0.120
2. SIA Engg -0.050
3. StarHub -0.040
4. SembMar -0.020
5. Capitaland -0.020
US markets rebounded yesterday and Asian bourses taking the lead were positive for the day with Nikkei +0.45%, SSE +2.30% and HSI +1.05%. STI after 4 straight days of drop finally rebound with a closing of +0.56% but came with typical thin daily volume and value. 15 of the 30 index stocks posted gain.
A firm weekly jobless claims stabilized US markets temporary ahead of tonight non-farm payroll data. Asian markets taking the lead from US were traded positive for the day despite China announced its export and import fell sharply in April, surprising all expectation. However, the weak set of data only affirm investors that Chinese Government will have to act and most anticipating another 25-basis point of interest rate from PBoC. Next up will be tonight US non-farm payroll data. Strong set of data will assure US economic growth is not losing steam but concern that US Fed can do a rate hike as early as June. On the other hand, weak set of data worries US economic growth but could delay US Fed from hiking interest rate.
STI in line with regional markets rebounded for the day but the rebound was rather cautious as lacking of buyers. Interest rate sensitive stocks were mostly down properly cautious that a strong set of US job data could bring US Fed to hike interest rate next month. On the other hand, banking stocks were lifting the index which is obvious that any interest rate hike will benefit them. As a whole, if 3,420 is able to hold for the next few weeks, STI will be establishing a base around that and if fails, it will continue to search for a support.
