Finally, a ray of hope shone on market participants as equities roared back to life.

The STI regained the 3,000 level on 25 March on the back of growing optimism over the state of US financial institutions and a steadier US currency. A revised US$10 per share offer for Bear Stearns by JPMorgan and a surprise rise in US housing sales helped to keep the bears at bay.

Following the surge, the STI ended the fortnight at around the same level as at end of January 2008. Any breakout above the 3,100 resistance on high volume should be very bullish.

S-chips also staged a comeback late in the fortnight as compared to the lacklustre performance of their Shanghai-listed counterparts. The relatively underpriced China plays listed in Singapore proved to be a tempting treat for investors.

As a sign of confidence in the local economy’s resilience, Dubai-based AI-Futtaim Group upped its takeover offer for venerable retailer Robinson & Co. The Middle East company increased its offer price to $7 a share, from its earlier bid of $6.25.

At the same time, Allco REIT managed to regain its luster, despite a downgrade by Moody’s. The REIT obtained approval to extend its $550m loan facilities till December 2009. With the ghost of refinancing laid to rest, its share price rose to $0.805.

Next week, do look out for the US jobs report, which will be out on 4 April.