FTSE STI closed 3,298.09, down 25.04 points or -0.75% with a total volume of 1.10b and a total value of S$885M. Total number of advance vs decline was 151 vs 263. Of the 30 component index stocks, 7 closed positive, 3 unchanged and 20 in the red. The top 5 gainer component stocks were :-
1. Kep Corp +0.080
2. SembMar +0.040
3. CapitaMall Trust +0.010
4. ComfortDelGro +0.010
5. GLP +0.010
5. Wilmar +0.010
The top 5 loser component stocks were :-
1. JMH USD -2.100
2. JSH USD -1.170
3. DBS -0.210
4. SIA -0.170
5. UOB -0.120
5. Jardine C&C -0.120
US markets fell at least 0.40% yesterday and Asian bourses again was in a sea of red with Nikkei -0.64%, SSE -3.44% and HSi -1.10%. STI fell 0.75% in thin volume and value with only 7 of the 30 index stocks posted gain.
The possibility of Greece default and exit euro increases as both Greek Government and creditors blamed each other for failing to reach a deal. The nervous ahead of 2-day US Fed FOMC meeting also played a part in the selling down of global market. While US Fed will not do a rate hike this month, the odd of it happening in September does increases. For Greece, probably it will be better for Greece to get default and exit euro, a short-term knee-jerk to global markets but definitely a better option in the long run. Continue to bailout will probably see the deja vu scenario happening months later. Meanwhile, SSE tumbled more than 3% after margin lending curbs.
STI with the negative sentiment, nervous ahead US Fed FOMC meeting and lacking of bargin hunting sent it near last week low. Again, many will be trying to guess where the bottom will be. The question is not where the bottom is but rather based on fundamental, which price is the cheap valuation for bargain hunting. Bargain hunter should commence accumulating after this week.
