Daily Markets Briefing: STI down 0.2%

Find out who the biggest losers were.

According to KGI Fraser, Asian markets returned to calm on Monday even as the British pound continued to weaken to to its lowest level since 1985. The STI recouped early morning losses to close relatively flat at 2730 pts, while the Nikkei (+2.4%) and Shanghai (+1.4%) markets closed higher.

Here’s more from KGI Fraser:

Markets are still trying to digest the implications of Brexit, judging by the mixed closing of the two companies in the STI with the biggest exposure to the U.K.; CityDev (-3.7%) led losers while ComfortDelgro (+0.4%) managed to close positive. CNMC Goldmine (+10%; BUY TP $0.48) continued to outperform the market, reaching its highest levels in more than 3 years.

Given the cautious outlook, REITs and the Telecom sector gained between 1-2% as investors shifted to a more defensive strategy. The chances of a US rate hike by December 2016 has decreased to 15%, from 50% before the Brexit vote, according to Fed fund futures. This could lend further support to gold prices and gold companies like CNMC Goldmine, one of our current top picks.