STI +0.5%; China, Commodity Plays Up; 3056 Cap

Singapore shares holding onto gains at start of afternoon session as China market rally lifts mood, pre-market Dow futures give bullish lead; STI +0.5% at 3044.33 with resistance tipped at 10-day moving average of 3056. But marketwatchers remain cautious of calling breakout rally; "our short-term view is still that the market is rangebound between 2800-3200," says UOB-KayHian research head Nancy Wei. S-chips rallying, FTSE ST China index +3.4% at 453.16; commodity plays also doing well on continued optimism that commodities offer bright spot amid wider economic uncertainty, Olam (O32.SG) +6.6% at S$2.75, Noble (N21.SG) +4.4% at S$2.35