'The market might have gotten overly panicked and the rebound might last for a few days, but I don't think this is it,' said Kenneth Ng, an analyst at CIMB.
'We have to live with reality, and that reality will come when earnings start falling.'
The Straits Times Index ended 130.71 points or 7.8 per cent higher at 1,801.91, after rising as much as 9.9 per cent earlier in the day.
A senior private banker here said that it was not yet time for investors to plunge back into stocks. 'If you look at the level of volatility in the market, that's a classic sign of a bear market.'
CIMB's Mr Ng said that banks and property firms here especially still have 'a lot of headwinds to fight'.
For the banks, 'you're likely to see big writedowns' on investment securities, he said.
'This Q3 earnings will be the most unpredictable earnings season ever.'
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