Singapore, Jan 10, 2026, 14:53 (SGT) — Market closed
- UOB shares ended Friday slightly higher, up 0.03% to S$36.02, after fluctuating between S$36.01 and S$36.24 during the session
- The bank revealed a fresh on-market buyback, cancelling 38,000 shares purchased last Friday
- Traders are watching a U.S. Supreme Court decision set for Jan. 14 amid ongoing tariff uncertainty in Asia
Shares of United Overseas Bank Limited (UOBH.SI) inched up 0.03% to S$36.02 on Friday, following news of another on-market buyback. According to a Singapore Exchange filing, UOB purchased 38,000 shares at prices ranging from S$36.01 to S$36.21, spending roughly S$1.37 million, before cancelling them. (SGX Links)
Why it matters now: markets brace for a week that could bring a flood of tariff news. The U.S. Supreme Court plans to hand down rulings on Jan. 14, including a pending case challenging President Donald Trump’s global tariffs. Still, the court hasn’t specified which cases it will rule on that day. (Reuters)
Singapore’s Straits Times Index edged up 0.1% on Friday, but bank stocks diverged. DBS shares rose 0.5%, while OCBC slipped 1.8% after JPMorgan downgraded it from “overweight” to “neutral,” the Straits Times reported. Neil Wilson, UK investment strategist at Saxo Markets, cautioned that tariff headlines could keep rattling markets: “Tariffs are not going anywhere.” (The Straits Times)
UOB kicks off the week with investors zeroing in on its margin and credit outlook. Back in November, the bank revealed a sharp 72% drop in third-quarter net profit, down to S$443 million, after setting aside S$1.36 billion in credit allowances. Deputy Chairman and CEO Wee Ee Cheong described this move as a step “to significantly enhance provision coverage.” Looking ahead, UOB forecasts its 2026 net interest margin—the difference between loan earnings and deposit costs—between 1.75% and 1.80%, and anticipates total credit costs of 25 to 30 basis points, with each basis point representing 0.01 percentage point. (Reuters)
Buybacks might provide some support to a stock, but they don’t resolve the larger concerns about loan growth and asset quality amid changing rate forecasts and trade policies. For UOB, investors are focused on whether deposit costs will come down, if fee income remains stable, and whether the bank can keep credit costs in line with its own guidance.
On Friday, UOB’s share price stayed trapped within a tight range. Traders have their eyes on the S$36.00 level, which acted as support after this week’s dip, while the S$36.24–S$36.25 zone marked the closest resistance near Friday’s peak.
The trade could still veer off course. If a court strikes down the tariff mechanism, we might see a quick risk-on rally. But any policy backlash could reignite uncertainty. On the flip side, if tariffs stay put, they’ll continue weighing on trade-driven economies and credit markets.
