Profit-taking in Singapore may surface in early trade with shares now at 27-month high, especially in wake of retreat in US stocks, says Dow Jones.

Support for STI, up 0.7% at 3,113.46 yesterday (highest since June 2008), expected at last week’s 3,069 low. Any upside expected to meet resistance at 3,146, higher end of breakdown gap formed in June 2008.

“Even though the market could continue to trend upwards to the end of this month or even into early October, investors should be cautious of a sudden turn in sentiment,” says Asiasons WFG; adds “if (the US) economy does not improve and the market continues to cheer for better-than-expected releases just because the estimates were low, there will be a point when sentiment will turn.”

Industrial property plays like Cache Logistics (K2LU.SG), Ascendas REIT (A17U.SG), Mapletree Logistics (M44U.SG) may slip as Global Logistic Properties’ mega IPO, raising at least $3.1 billion, may drain liquidity from smaller peers; listing expected October 18.