Singapore shares may retreat slightly as investors digest some of yesterday’s robust gains, with Wall Street’s modest rise overnight not likely to fuel another round of strong buying activity, according to Dow Jones.

Market action may also be subdued with investors awaiting key US non-farm payrolls data for May due tonight. STI expected to hold above 2,750 (May 31 low) after closing +2.4% at more than 2-week high of 2,793.47 yesterday; resistance tipped at 2,815 (May 19 high). Cyclical stocks such as banks, commodities, shipping lines may be most prone to profit taking after leading advance yesterday.

“It’s been a rough ride lately with the market coming down so much before yesterday’s rebound. People will continue to react very quickly to any negative news but this lull period is a good time to accumulate as fundamentals still look fine,” says a dealer at a foreign brokerage.