FTSE STI closed 2,945.43, up 72.43 points or +2.52% with a total volume of 1.96b and a total value of S$1.61b. Total number of advance vs decline was 459 vs 61. Of the 30 component index stocks, 29 closed positive and 1 unchanged. The top 5 gainer component stocks were :-
1. JMH USD +2.240
2. Jardine C&C +1.650
3. DBS +0.440
4. JSH USD +0.410
5. UOB +0.390
US markets posted a gain of almost 4% yesterday and Asian bourses rallied for the day with Nikkei +1.08%, SSE +5.40% and HSI +3.60%. STI rose 2.52% in moderate volume and value than past days with 29 of the 30 index stocks registered gain.
US markets finally rebounded snapping a 6 days of losing and got out of correction phase. That was mainly due to comment from one of US Fed that September rate hike looks less compelling and that could signify US Fed going to delay rate hike. Question now is whether the rebound can be sustained ? For Asian markets, the positive sentiment from US markets helped lifted the bearish sentiment and China market finally rebounded and again question will be whether the rebound can be sustainable. US will release its 2Q GDP tonight and next week will be the much await China official PMI data for August in which most expecting a contraction and the question will be how bad will the contraction be. The current slow down in China economy in particular since June till now will have impact on global economy but how bad still an unknown.
STI rallied, reclaimed the 2,900 level and testing the resistance at 2,950. The buying was broad base with bank and the Jardine group of stocks lifted the index. However, do cautious that how sustainable is it for this rebound ? Should the 2,950 level is unable to overcome with volume, STI might going down to re-test the recent low again.
