Singapore, Jan 7, 2026, 15:17 SGT — Regular session
- OCBC shares were down about 0.6% in afternoon trade after pushing further above the S$20 level.
- Bank heavyweights have powered Singapore’s benchmark index to fresh records this week.
- Investors are watching policy signals on interest rates and the timing of upcoming results.
Shares of Oversea-Chinese Banking Corp (OCBC) (SGX:O39) fell 0.6% on Wednesday as traders took profit after the stock moved above S$20. By 2:59 p.m. Singapore time, OCBC was at S$20.06 after earlier trading as high as about S$20.25; peer DBS Group (D05) rose 0.6% and United Overseas Bank (U11) slipped 0.1%. 1
The pullback keeps OCBC in focus after it crossed the S$20 mark for the first time on Tuesday, when Singapore’s benchmark Straits Times Index (STI) broke 4,700 points. The index hit an all-time high of 4,741.85 points in late morning trade, helped by gains in the banks, The Business Times reported.
Analysts have pointed to policy support and lower-rate expectations as key props for the rally, with the banking sector a major driver because it makes up about half of the STI. “The Singapore market will continue to attract fund flows,” UOB Kay Hian analyst Adrian Loh said, while OCBC head of equity research Carmen Lee called the 2026 environment “constructive,” according to a separate Business Times report. Macquarie, however, warned that a sharper drop in rates — including in SORA, a local overnight benchmark — could turn 2026 into a “stock pickers” market rather than a broad rally.
Dividend yield — the annual cash payout relative to the share price — has also helped underpin demand for Singapore blue chips as investors weigh a lower-rate outlook. Any shift in rates matters for banks because it can squeeze net interest margin, the spread between what lenders earn on loans and pay on deposits.
But a faster-than-expected fall in rates or a turn in credit quality could test the market’s optimism and pressure bank earnings. Investors are also wary that a rally led by a handful of heavyweight stocks can unwind quickly if fund flows fade.
