Wall Street’s broad-based rally expected to rub off on Singapore shares, but whether that’s enough to revive participation remains to be seen given substantially lower market volume since beginning June, says Dow Jones.

Initial resistance for STI at this week’s high of 2,769; closed +0.5% at 2,727.57 yesterday, when mere 956.2 million shares changed hands in broad market, lowest in 10 months, vs 1.07 billion shares Tuesday. Still, some market watchers say lull period is ideal for buying following correction in May.

“The ground’s getting sweet again,” says DMG research head Terence Wong, “I do not expect a double dip in the global economy, and believe that the current sell-down is a correction and not the start of another bear market.”

Favours hospitality, retail, tech plays, such as CDL Hospitality Trusts (J85.SG), FJ Benjamin (F10.SG), Armstrong Industrial (A14.SG).