Singapore, Jan 6, 2026, 19:07 SGT — Market closed
- DBS shares jumped 2.3% to S$57.93, marking a fresh high
- Singapore’s Straits Times Index closed above 4,700 for the first time, led by bank heavyweights
- Focus turns to rate expectations and DBS’ Feb. 9 quarterly results
DBS Group Holdings’ share price closed up 2.3% at a record S$57.93 on Tuesday, as a rally in Singapore banks pushed the broader market higher.
The move matters because DBS is a heavyweight in Singapore’s Straits Times Index (STI), which rose 1.3% to 4,739.97 — its first close above 4,700. The benchmark earlier touched an all-time high of 4,741.85 during the session.
Investors have chased Singapore’s large-cap stocks into the new year after the STI climbed 22.7% in 2025, with brokers pointing to government market-support measures and expectations of lower interest rates. UOB Kay Hian has cited policy tailwinds and a more active IPO market as factors that could keep the rally going.
DBS hit an intraday record of S$57.92, while its local peers also gained. OCBC closed up 1.1% at S$20.18, its first finish above S$20, and UOB ended up 1.2% at S$35.91.
“Geopolitical risks have clearly escalated over the past week,” said Geoff Howie, a market strategist at Singapore Exchange, as investors weighed overseas risks alongside domestic data. The Business Times
Strategists are split on how long bank-led momentum can last. UOB Kay Hian has flagged a path for the STI to reach 5,000 by end-2026, but Macquarie expects the index to end 2026 nearer 4,500 and warned that falling rates could pressure bank revenues in a market where lenders account for about half the benchmark.
For DBS, the next test is whether fee income and a pickup in loan growth can offset pressure on net interest margin — the gap between what a bank earns on loans and pays on deposits — if interest rates continue to ease.
Trading in DBS picked up, with about 5.4 million shares changing hands versus roughly 3.0 million in the prior session, MarketScreener data showed. After Tuesday’s record close, the next psychological level sits near S$58, with support around the prior close of S$56.65.
But the rally leaves less room for surprises. A faster-than-expected drop in rates, or a renewed bout of risk aversion tied to geopolitics, could quickly cool Singapore bank shares that have led the index higher.
The next key catalyst for DBS is its fourth-quarter 2025 results on Feb. 9, when investors will look for guidance on margins, loan growth and shareholder returns.
