Singapore’s STI heads higher at 9:39 a.m., almost touches key 2,900 mark as reassuring US retail sales give enough impetus for market to extend last week’s gains, reported Dow Jones Newswires.

The STI is 0.5% at 2,895.46 with immediate resistance tipped at 2,900 (last breached Jan. 20), then at current 2010 high of 2,947 beyond that. DMG technical analyst James Lim thinks STI is, “poised to extend its gains,” as technical picture looks “encouraging.”

Adds, “we thus are advocating traders to participate in this ongoing rally before an overbought condition is reached and while the risk-reward ratio is still favorable.”

Blue chip gains being led once again by Jardine companies as recent strong FY09 results, share buyback plans continue to spark interest; Jardine Strategic (J37.SG) +4.7% at US$20.50 ($28.59), Jardine Matheson (J36.SG) +3.5% at US$34.56. Gainers outnumber losers 2 to 1 in broad market, but traded volume thin.