On 14 August 2008 when the trading bell starts, the market was rather impressive chalking a substantial gain which was lated pulled down after the other major markets like HSI and SSE started to give directions. The que was taken from the China Markets, but STI still ended up in the green in nick of the time.
Looking at the top actives, most of the China stocks are turning green. The most notable ones are Yangzijiang and Li Heng. Li Heng in particularly is in Fibre Chemical line which has led other counters dealing in the same businesses like SinoTechFibre in China to the green zones.
However, the rest of the STI index stocks other then the China stocks are all affected by the overnight loss over at the Wall Street due to worries on Financial. Looking ahead, with investors that going for shorts early or mid this week, a rally on S-Shares will probably propell them to sell which will resulted in a very big gain with these S-Shares in STI which will at the same time bringing in some long position bringing the prices higher. Market sentiment is moving towards China Stocks as it seems really undervalued with limited downside considering the risk-reward ration.
Above are of personal opinion and not an inducement to trade.