Singapore, Jan 24, 2026, 14:49 SGT — Market closed.
- OCBC (O39.SI) closed Friday at S$21.29, jumping 3.4% for the day and roughly 4.2% over the past five trading sessions. (MarketScreener)
- UOB ended at S$39.50, up 5%, while DBS edged up nearly 1% to S$58.65, pushing the STI to a record 4,891.45. (The Straits Times)
- The upcoming U.S. Federal Reserve policy meeting on Jan 27-28 is the next crucial macro event. (Federal Reserve)
Shares of Oversea-Chinese Banking Corporation Limited (OCBC) hit a new high, closing at S$21.29 on Friday, up 3.4%. This came as Singapore banks received fresh target-price upgrades. Macquarie’s Jayden Vantarakis raised OCBC’s target to S$21.50, citing Singapore’s appeal as a “safe-haven” for wealth inflows. Kathy Chan, an equity analyst at Morningstar, noted the market now anticipates the U.S. Federal Reserve will pause rate changes in March and April instead of cutting rates immediately. (The Business Times)
OCBC’s weight means it’s now a major driver of Singapore’s benchmark. Just a couple of solid days from the trio of banks can push the entire index, even if other sectors are uneven.
This comes at a tricky point for rate bets. Banks thrive while rates hold steady at high levels, but their gains evaporate fast as traders begin to factor in quicker rate cuts.
Fed funds futures showed a 97% probability of a rate hold next week, despite the yen surging and oil prices climbing amid concerns over Iran, Reuters reported Friday. (Reuters)
OCBC is moving to diversify its revenue streams. The bank announced plans to launch a dedicated securities financing unit targeting institutional clients. This unit will generate fee income by lending out 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 remains niche for most retail investors, but the pitch is straightforward: extra fee income that doesn’t rely on loan growth. With rates easing, that revenue stream starts to gain importance.
When markets reopen Monday, traders will be eyeing if Friday’s surge sticks or if the stock slips back as the week’s macro calendar gets underway. Early moves usually hinge on U.S. yields and the dollar—both of which have been volatile.
But the rally isn’t without risks. If the Fed shifts dovish, yields could drop, tightening banks’ net interest margins — the difference between loan income and deposit costs. On top of that, any unexpected jump in bad loans would put the trade under pressure.
OCBC is set to release its full-year results on Feb 25 before the market opens, according to a Singapore Exchange filing. Investors will be watching closely for updates on margins, credit costs, and wealth income following the bank’s recent record rally. (SGX Links)
