Singapore, Jan 31, 2026, 15:04 SGT — Market closed
- DBS shares slipped 1% to close at S$59.20 on Friday, pressured by a drop in Singapore’s benchmark index.
- MAS kept policy settings unchanged but bumped up its 2026 inflation forecast, leaving markets wary of possible tightening down the line.
- All eyes on DBS’s Feb 9 earnings, as investors seek signals on margins, fees, and credit health.
DBS Group Holdings shares (D05) slipped 1 per cent to close at S$59.20 on Friday. The Straits Times Index dipped 0.5 per cent, weighed down by a cautious mood after Wall Street’s softer finish. Private banking and asset manager LGT noted that Asia-Pacific stocks mostly fell as risk appetite waned. (The Business Times)
As the market rests over the weekend, attention turns to what might steer DBS’s stock price once trading kicks off again Monday. A central bank’s decision to hold policy steady and an upcoming earnings report are both lined up for impact.
On Thursday, the Monetary Authority of Singapore left its monetary settings unchanged but raised its inflation forecast for 2026. It also flagged that risks to growth and prices no longer lean in one clear direction. Singapore manages policy through the Singapore dollar nominal effective exchange rate (S$NEER), a trade-weighted index, rather than adjusting interest rates. The Federal Reserve also held rates steady overnight. Selena Ling, an economist at OCBC, described the stance as “a tad more hawkish and less dovish,” suggesting future moves might be seen as “normalisation rather than tightening.” Meanwhile, Maybank economist Chua Hak Bin said: “We are more positive on the growth outlook and see simmering inflation pressures emerging.” (Reuters)
The slump wasn’t confined to a single stock. United Overseas Bank dropped 1 per cent to S$38.27, while OCBC edged down 0.6 per cent to S$21.23, dragging the index lower. (The Straits Times)
DBS ended the previous session at S$59.79. On Friday, its shares swung between S$59.02 and S$59.65, showing a modest pullback that stayed well within range. (Investing)
Despite Friday’s drop, the stock remains roughly 5 per cent higher year-to-date, based on market data. That’s significant—it means the next catalyst has to push the stock beyond an already elevated level, not just react to short-term moves. (MarketScreener)
The upcoming earnings report is the next big trigger, bringing familiar questions back into focus. Investors want to see how net interest margin (NIM)—the gap between what banks earn on loans versus what they pay on deposits—shifts as funding costs and loan rates change.
Fee income, wealth flows, and changes in credit costs will also be under scrutiny, particularly if global risk appetite remains shaky. A drop in loan demand or a spike in provisions could hit hard, considering how much recent gains in Singapore banks rely on consistent earnings and cash returns.
DBS is set to release its fourth-quarter 2025 results on Feb 9, marking the key milestone for the stock next week. Before that, the initial test hits when trading resumes Monday after the weekend. (Dbs)
