STI fell 105 pts (2.81%) to close at 3642 pts with a volume of 2.5 billion shares transacted. HSI did better, dropping 1091 pts (3.70%). But I think jakarta did the best, dropping 4.31% among the asia pacific bourses. This is all in response to Dow's big drop last Fri of around 360 points.
Seriously, STI need to correct itself before the final push of the year end rally. STI had risen too fast in the first 2 weeks of Oct, so treat this as a good chance for things to cool down a little before we resume the rise. From today's action, I can see supportive buying at various levels. It's quite unlike the selloff around August where there is almost no buyers. I think that's a good sign at least.
This temporarily (I do hope so!) selling should carry on for this week, perhaps ending by early next week just before FED goes for their rate meeting around 30-31 Oct. From the looks of it, seems like Dow might be heading for a recession. We'll see how Bernanke balance the risk of inflation against the risk of recession. Might see another rate drop? Ironic isn't it? If they didn't cut, their economic would go into recession. If they intervene, it would also go into recession. Perhaps by intervening, the situation might be even worse than if it is given time to self correct. Aiya, I know nuts about econs...
Some news to share:
1. Big news over at sembcorp marine. One of their employees entered into various unauthorised foreign exchange transaction for the account of Jurong Shipyard (their newly incorporated subsidiary) and mislead the group in relation to the unauthorized transactions. The estimate of the unreleased loss arising from this is in the region of US$165 million . This does not include the sum of US$83 million in which Jurong shipyard paid to one of the banks before the unauthorised transaction were discovered.
Wow, corporate scandals...looks like another Nick leeson - the man that broke baring bank. Tmr Sembcorp marine will surely get punished.
2. CSC had proposed an acquisition of 60% equity stake in CLS holdings. CLS holdings is an investment holding company to be incorporated by CSC to hold the business and assets relating to the singapore operations of Kok Tong Group of companies which specalises in earthworks and owns a full range of excavation and earth-moving equipment.
This is supposed to strengthen CSC current core of foundation and geotechnical engineering works. Looks like CSC is expanding by eating smaller companies to perhaps monopolise the geotechnical engineering works. I personally do not know approve of such moves because they should concentrate on expanding vertically, not horizontally by eating up companies. They should perhaps expand overseas to capture the huge opportunities in china and middle east for one thing. I wonder if all these acquisition bring about any real impact to their coffer. Anyway, I'm in it for the IR thingy and hope to be out of it soon.
Europe tua lao, Dow gyrating up and down in huge swings. Currently down by 53 pts.
Seriously, STI need to correct itself before the final push of the year end rally. STI had risen too fast in the first 2 weeks of Oct, so treat this as a good chance for things to cool down a little before we resume the rise. From today's action, I can see supportive buying at various levels. It's quite unlike the selloff around August where there is almost no buyers. I think that's a good sign at least.
This temporarily (I do hope so!) selling should carry on for this week, perhaps ending by early next week just before FED goes for their rate meeting around 30-31 Oct. From the looks of it, seems like Dow might be heading for a recession. We'll see how Bernanke balance the risk of inflation against the risk of recession. Might see another rate drop? Ironic isn't it? If they didn't cut, their economic would go into recession. If they intervene, it would also go into recession. Perhaps by intervening, the situation might be even worse than if it is given time to self correct. Aiya, I know nuts about econs...
Some news to share:
1. Big news over at sembcorp marine. One of their employees entered into various unauthorised foreign exchange transaction for the account of Jurong Shipyard (their newly incorporated subsidiary) and mislead the group in relation to the unauthorized transactions. The estimate of the unreleased loss arising from this is in the region of US$165 million . This does not include the sum of US$83 million in which Jurong shipyard paid to one of the banks before the unauthorised transaction were discovered.
Wow, corporate scandals...looks like another Nick leeson - the man that broke baring bank. Tmr Sembcorp marine will surely get punished.
2. CSC had proposed an acquisition of 60% equity stake in CLS holdings. CLS holdings is an investment holding company to be incorporated by CSC to hold the business and assets relating to the singapore operations of Kok Tong Group of companies which specalises in earthworks and owns a full range of excavation and earth-moving equipment.
This is supposed to strengthen CSC current core of foundation and geotechnical engineering works. Looks like CSC is expanding by eating smaller companies to perhaps monopolise the geotechnical engineering works. I personally do not know approve of such moves because they should concentrate on expanding vertically, not horizontally by eating up companies. They should perhaps expand overseas to capture the huge opportunities in china and middle east for one thing. I wonder if all these acquisition bring about any real impact to their coffer. Anyway, I'm in it for the IR thingy and hope to be out of it soon.
Europe tua lao, Dow gyrating up and down in huge swings. Currently down by 53 pts.
