SINGAPORE, Jan 27, 2026, 14:47 SGT — Regular session
- Shares of DBS Group climbed roughly 1.4%, reaching S$59.10 in afternoon trading, near the session peak.
- UOB Kay Hian raised DBS to a “buy” rating, setting the target price at S$68.95. Phillip Securities, however, took a more cautious stance.
- Investors are focused on the U.S. Fed’s decision set for Jan 28 and DBS’s full-year results due Feb 9.
Shares of DBS Group Holdings climbed 1.4% to S$59.10 in Tuesday afternoon trading, fluctuating between S$58.60 and S$59.35, edging closer to a new 52-week peak, according to Investing.com data.
This matters because bank investors are juggling two factors: the U.S. Federal Reserve’s guidance on interest rates due Wednesday, and DBS’s February report on margins and capital returns. The Fed wraps up its two-day meeting on Jan. 28.
UOB Kay Hian has raised its rating on DBS from “hold” to “buy,” setting a target price at S$68.95. Analysts John Cheong, Heidi Mo, and Tang Kai Jie said the stock’s yield still justifies its valuation despite recent gains. “Current yield suggests DBS is not expensive,” they noted in comments reported by The Business Times. The Business Times
Not everyone is on the same page. Phillip Securities downgraded DBS from “accumulate” to “neutral,” flagging the stock’s strong run and cautioning that falling local interest rates could squeeze net interest margins — the gap banks earn between loans and deposits — even as deposit costs shift, according to a sector note summary on SGinvestors.io. Still, the brokerage kept DBS as its sector pick, highlighting its capital return programme and fixed dividend per share. SG Investors
DBS dipped 0.6% to S$58.29 on Monday, dragged down alongside Singapore’s other major banks as the Straits Times Index fell, The Straits Times reported. Vishnu Varathan from Mizuho Securities noted investors are bracing for this week’s Fed decision, widely anticipating rates will hold steady.
Beyond Singapore, Asian equities have seen a pickup in risk appetite, driven by investors zeroing in on major U.S. earnings and central bank cues. This follows a volatile start marked by geopolitical tensions and tariff concerns.
In Singapore, the focus is on SORA — the Singapore Overnight Rate Average — a crucial benchmark for loan pricing and funding costs throughout the financial system. A decline in SORA typically pushes bank lending yields down, though how quickly deposits are repriced often determines if margins remain stable or shrink.
But the upside scenario carries a clear risk. Should markets begin to factor in faster rate cuts, or if local benchmarks drop faster than banks can lower deposit rates, net interest income could take a hit. That would put the dividend-and-buyback narrative under serious strain.
Investors in DBS will be keen to see if fee income and wealth management activities can counteract any margin pressure, and if credit costs remain under control amid slowing growth in certain regional areas. Guidance here could influence the stock more than the headline profit figure.
The next major event is the Fed decision on Jan. 28. After that, DBS will release its fourth-quarter and full-year 2025 results on Feb. 9, per the bank’s investor calendar.
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