SINGAPORE, Jan 10, 2026, 14:50 SGT — Market closed
- OCBC ended Friday down 1.8% after JPMorgan cut its rating to neutral.
- The stock is back below S$20 after touching a record high earlier in the week.
- Next key date: OCBC’s full-year results on Feb. 25.
Shares of Oversea-Chinese Banking Corp (OCBC) fell 1.8% on Friday to close at S$19.80 after JPMorgan downgraded the Singapore lender to “neutral” from “overweight” and lifted its target price to S$20.50. DBS gained 0.5% and UOB was little changed as Singapore’s benchmark index ended slightly higher. 1
The move matters because the local bank trade has become crowded early in 2026, helped by dividends and a hunt for steady names amid choppy headlines. UOB Kay Hian analyst Jonathan Koh called the sector “attractive value” and said, “We also like OCBC for its focus on trade and investment flows within Asean,” pointing to a lower forecast price-to-book ratio — a valuation measure that compares a bank’s market value to its net assets.
OCBC’s next hard catalyst is its full-year 2025 results on Feb. 25, according to the bank’s financial calendar. Investors will listen for any shift in tone on net interest margin — the spread between what a bank earns on loans and pays on deposits — and how management sees credit costs heading into 2026.
Price action has been quick. OCBC traded above S$20 for much of the week and hit an intraday high of S$20.25 on Jan. 7 before sliding back to Friday’s low and close at S$19.80. Turnover rose to about 8.4 million shares on Friday from roughly 4.3 million a day earlier. 2
Chart watchers often treat recent lows as “support” — levels where buyers have tended to step in — and recent highs as “resistance”, where selling pressure shows up. On that yardstick, S$19.80 is the near-term line in the sand, with S$20.25 the level bulls need to clear again. 3
JPMorgan’s new S$20.50 target sits about 3.5% above Friday’s close, a thin cushion after the run-up. The downgrade, even with a higher target, leaves the stock more sensitive to shifts in rate bets and any wobble in risk appetite when markets reopen. 4
But the downside case is easy to sketch. Faster-than-expected rate cuts can squeeze loan margins, while a soft patch in regional growth can push up bad debts and force banks to build provisions. A strong Singapore dollar can also cool some cross-border activity that wealth managers lean on.
Trading resumes on Monday, with attention on whether OCBC can hold the S$19.80 level after the broker call. Beyond that, shareholders have the bank’s annual general meeting on Jan. 29 before the Feb. 25 results.
