Singapore, Jan 24, 2026, 14:49 SGT — The market has closed.
- OCBC (O39.SI) wrapped up Friday at S$21.29, surging 3.4% on the day and climbing about 4.2% across the last five trading sessions. MarketScreener
- UOB closed at S$39.50, gaining 5%. DBS rose just under 1% to S$58.65, lifting the STI to a fresh high of 4,891.45. The Straits Times
- The U.S. Federal Reserve’s policy meeting set for Jan 27-28 stands out as the next key macro event. Federal Reserve
Oversea-Chinese Banking Corporation Limited (OCBC) shares climbed to a fresh peak, closing Friday at S$21.29, up 3.4%. The rise followed new target-price upgrades for Singapore banks. Jayden Vantarakis of Macquarie lifted OCBC’s target to S$21.50, highlighting Singapore’s role as a “safe-haven” for wealth inflows. Morningstar equity analyst Kathy Chan pointed out that the market now expects the U.S. Federal Reserve to pause rate changes in March and April rather than cutting rates outright. The Business Times
OCBC’s heavy weighting makes it a key force behind Singapore’s benchmark. A strong couple of sessions from the bank trio can lift the whole index, despite mixed performances elsewhere.
This arrives at a delicate moment for rate wagers. Banks benefit when rates stay firmly elevated, yet their profits vanish quickly once traders start pricing in faster rate reductions.
Fed funds futures price in a 97% chance the Fed will keep rates steady next week, even as the yen jumped and oil prices rose on worries about Iran, Reuters reported Friday. Reuters
OCBC is shifting gears to broaden its revenue base. The bank revealed intentions to set up a dedicated securities financing unit aimed at institutional clients. This new division will earn fee income by lending idle equities and bonds held by customers. “The ability to access liquidity and deploy capital efficiently has become critical,” said Kenneth Lai, OCBC’s head of global markets. The Edge Singapore
Securities financing still feels niche to many retail investors, but the message is clear: it offers extra fee income without depending on loan growth. As rates ease, that revenue stream becomes increasingly valuable.
Markets reopen Monday with focus on whether Friday’s rally holds or the stock pulls back as the week’s macro events kick off. Early action will likely track U.S. yields and the dollar, both showing sharp swings recently.
But the rally carries risks. A dovish pivot by the Fed could send yields lower, squeezing banks’ net interest margins—the gap between what they earn on loans and pay on deposits. Add to that, a surprise rise in bad loans would weigh heavily on the trade.
OCBC will announce its full-year results on Feb 25 ahead of market open, per a Singapore Exchange filing. Investors are keen to see how margins, credit costs, and wealth income fare after the bank’s recent record run. SGX Links
