The STI rises 0.2% to 3246.36 with 22 of the 30 index components trading higher after Wall Street’s gain Tuesday, and amid broadly higher regional markets; there are over 3 gainers per decliner with 361 million shares traded on the broad market. 

From a regional perspective, Daiwa says it expects ASEAN markets to build on their gains for 2010 in 2011, “as corporate earnings ride on robust household spending and rising infrastructure investment.” 

Though it says real-GDP and EPS growth may slow this year, “we see early signs that economic growth is broadening, which we believe bodes well for the medium-term.” 

 

The house remains Neutral on Singapore in the region as “relative valuations look less compelling than for ASEAN on average.” 

 

Analysts tip STI’s next resistance at 3250, support at 3220. Straits Asia Resources (AJ1.SG) surges 7.2% to $2.83 as investors react positively to news it was issued the Principle Licence for the Northern Leases coal mining area; Hyflux (600.SG) gains 2.1% to $2.39 on project wins in China.