Singapore shares continue to outperform region as heavyweights like banks and SingTel (Z74.SG) offer support, although STI are off highs and a question mark hangs over sustainability of rebound, reported Dow Jones Newswires.

The STI gained 0.3% at 2,692.48 vs morning high of 2,700.85 (+0.6%) with immediate resistance at 2,700.

DMG technical analyst James Lim says the STI trend remains negative: “We are sounding a note of caution for those who are looking to bottom-fish through catching a falling knife as additional downside is still expected for the week.”

SingTel gained 1.0% at $2.93 ahead of 3Q10 results due tomorrow.

Banks also doing well after DBS (D05.SG) kicked off their reporting season with no nasty surprises.

Genting (G13.SG) +0.9% at $1.12 after securing casino license for Resorts World at Sentosa.

Broad market volume remains thin; breadth now negative with losers just outnumbering gainers.