Rebound in Singapore shares enables STI to close technical gap of 2,718-2,735 formed late last week. Benchmark +1.4% at 2,740.14 midday, but expected to face resistance at 2,788 (May 20 high), according to Dow Jones.

Gainers outnumber decliners 2 to 1 in broad market, but overall participation low with 586.3 million shares traded. “The issues in Europe, while bad, (are) overblown. It is not the end of the world and it wouldn’t derail global growth. The current weakness, in my view, is a correction, and not the start of a bear market,” says DMG research head Terence Wong.

Best performers among STI components include Noble Group (N21.SG) +3.6% at $1.75, Hongkong Land (H78.SG), +4.1% at US$4.87, Wilmar (F34.SG), +3.4% at $5.73, CapitaLand (C31.SG) +2.9% at $3.61.