Singapore, Jan 8, 2026, 15:48 SGT — Regular session
- OCBC shares traded higher, within sight of recent record levels.
- Dividend yield demand has kept Singapore bank stocks in focus early in 2026.
- Valuation and the rate outlook remain the two big swing factors.
Oversea-Chinese Banking Corp (OCBC) shares were up 0.45% at S$20.15 in afternoon trade on Thursday, holding near the highs set this week after the stock first pushed through the S$20 mark. 1
The latest leg comes as Singapore’s big lenders start 2026 on strong footing, helped by dividend appeal and a broader “flight to quality” bid that has pushed DBS and OCBC to fresh all-time highs, even as some analysts warn upside may be harder to find from here. 2
Rate expectations are part of the mix. A soft U.S. private payrolls print this week kept investors focused on how fast policy could ease, a backdrop that often reshuffles money toward high-yield stocks.
OCBC rose as high as S$20.25 on Wednesday and ended that day at S$20.06 after crossing S$20 for the first time a day earlier, The Straits Times reported. Morningstar’s Lorraine Tan said investors were treating dividend-paying bank shares as “a proxy to holding Singapore government bonds”, while UOB Kay Hian’s Jonathan Koh called banks “attractive yield plays”. CGS International’s Tay Wee Kuang said investors were waiting for larger second-half 2025 dividends because OCBC’s 60% full-year payout target implies more is backloaded into the second half; he also pointed to attention on new CEO Tan Teck Long’s next strategy steps. 3
The price action is starting to look like a grind rather than a burst. A clean move back above Wednesday’s S$20.25 peak would leave OCBC in new territory again, while a slip back under S$20 would test how crowded the yield trade has become.
There is a catch. If rate cuts come faster than investors expect, banks can see pressure on net interest margin — the spread between what they earn on loans and what they pay on deposits — and that can pinch earnings even when credit stays calm.
For now, traders are also watching what OCBC signals on capital returns and the second-half dividend when the bank next updates the market, with the new CEO’s tone likely to matter as much as the numbers.
