Singapore, Jan 29, 2026, 14:51 (SGT) — Regular session
- DBS shares climbed roughly 0.6% to S$59.87, hitting S$60 earlier
- Singapore bank shares remain under the spotlight as shifting rate expectations follow central bank moves
- The next hurdle for DBS will be its Feb 9 results, which will show if it can maintain levels close to its record highs
Shares of DBS Group Holdings (DBSM.SI) hit S$60 on Thursday before slipping slightly to S$59.87 in afternoon trading, up 0.6%. The stock opened right at S$60 and has fluctuated between S$59.65 and that level, with around 2.44 million shares changing hands—still under its three-month average. 1
This matters because DBS is at the heart of Singapore’s bank-dominated market. When its stock rallies, it often pulls the entire index along.
Singapore’s central bank left its policy unchanged on Thursday but raised its inflation outlook for 2026 to a 1%-2% range for both core and headline figures. OCBC economist Selena Ling described the statement as “a tad more hawkish and less dovish.” Meanwhile, the U.S. Federal Reserve held rates steady overnight. 2
Bank shares showed mixed moves. OCBC (O39.SI) gained roughly 0.3%, hitting S$21.35. United Overseas Bank (U11.SI), on the other hand, slipped about 0.3% to S$38.59. 3
The recent rally has intensified the valuation debate. UOB Kay Hian analysts John Cheong, Heidi Mo, and Tang Kai Jie argue DBS shares remain “not expensive” amid rising yields. On the other hand, Macquarie Equity Research’s Jayden Vantarakis stuck to an underperform rating, placing DBS at the lowest rung in his relative-value “pecking order.” Vantarakis highlights that DBS offers the “least room” for upside this earnings season, pointing out forecasts factor in a credit charge of just 10 basis points — with a basis point equal to 0.01 percentage point. 4
That credit line sums up investors’ biggest worry when prices slide: a rise in bad loans or provisions cutting into profits. Traders will also keep an eye on net interest margin — the difference between what banks make on loans and pay out on deposits — as rate forecasts shift.
Rates are back on the radar following the Fed’s signal of patience. Jean Boivin, head of BlackRock Investment Institute, said the Fed’s “hawkish shift in tone doesn’t change the story much overall.” He noted markets are still pricing in two quarter-point cuts this year, with the first not fully factored in until July. 5
DBS is set to release its fourth-quarter and full-year results on Feb 9. Investors will be watching closely to see if the shares can sustain their push toward S$60, and whether credit costs and fee income meet market expectations. 6
