STI gains from Wall Street rally seen to continue

Kim Eng forecasts the index to test the 3,180 resistance level today after it closed above its key moving averages yesterday.

The STI closed at 3,165.80, recording a +40.43 gain the previous day on the back of positive figures from the US index.

Dow Jones +1.52% to its highest level since June 2008, S&P500 +1.35%, and Nasdaq +2.10%. Advancers included Intel and Yahoo! Inc who beat earnings estimates, while commodity stocks also gained as gold and silver hit record levels.

Gold breached the US$1,500 mark to arrive -0.20% to US$1,501.57 while silver also crossed US$45 an ounce amid the weakening USD and inflation fears.

Kim Eng predicts a high of 3, 189 and a low of 3, 138 for today's trading.