There was not much in the way of news to go on yesterday but that did not deter investors from pushing the local market up to snap a two-day losing streak.
The gains came as traders await further direction from the United States while staying inspired by Wall Street's rise last Friday.
The optimistic sentiment left the benchmark Straits Times Index (STI) up 9.93 points to 3,577.07.
While analysts expect the STI to make another headway towards 3,600, they also anticipate selling pressure once it gets there.
But this will likely be a "short, temporary correction, which allows profit-taking", said CMC Markets' Ms Margaret Yang Yan.
"This week, there is nothing much on the earnings calendar, so overseas market movement is likely to dominate the local market. A technical correction is possible but is unlikely to change the broader picture of the bull market," she added.
Oil continues to flirt with US$70 a barrel. Mr Norbert Rucker, head of macro and commodity research at Julius Baer, said: "It remains to be seen if prices are able to lastingly settle above this... Global growth optimism, the bullish market mood and technical momentum still provide robust support. We still believe that prices above US$60 a barrel project a too rosy fundamental picture."
Plenty of leads could come from the US this week. President Donald Trump will deliver his first State of the Union address today.
FXTM chief market strategist Hussein Sayed said: "Although he (Trump) is highly likely to declare a victory over the tax overhaul... investors will be focused on any details surrounding the infrastructure Bill, trade tensions, and border wall funding. So expect some volatility as he speaks."
The week will also see the last Federal Reserve policy meeting chaired by Dr Janet Yellen. While the Fed is largely expected to maintain the status quo, Maybank FX Research sees a "mild risk" of Dr Yellen making a move on rates to end her term. "With growth and inflation gaining traction, markets are likely to take a 25 basis points rate increase in their stride even if it is a surprise," the house added.
On the home front, about 2.3 billion shares worth $1.3 billion changed hands, compared with Friday's 1.6 billion shares at $1.2 billion. Gainers outpaced losers 238 to 208.
Gains were led by Keppel Corp, which climbed 23 cents to $8.86 as traders looked beyond Keppel's first-ever quarterly loss led by hefty fines and costs resulting from the bribery scandal in Brazil.