Asian stocks (represented by the MSCI Asia Pacific Index) logged its longest winning streak since 2005 amid the backdrop of improving manufacturing reports in China, Europe, India and U.S. S&P 500 jumped 2.2% higher for the week on the back of better than expected U.S. jobs report. STI has surged 272 points or 10.3% year to date. So, what lies ahead for the STI?

If there are no bad news from the European / Greece problems over the weekend, markets are likely to open higher on Monday. As mentioned last week, STI is likely to be on its way to challenge the gap 2,943 – 2,974 (formed on 5-8 Aug 2011). In addition, there has been a surge in trading volume and interest in small caps recently. As such, I would like to share my observations on the two stocks below.