Singapore, Jan 25, 2026, 14:47 SGT — Market closed
- OCBC surged 3.4% on Friday, closing at a record S$21.29, as gains in Singapore bank stocks pushed the STI to a new high
- Macquarie’s upgrade of UOB, along with positive forecasts for OCBC, helped sustain the sector’s momentum
- Attention turns to the Fed’s decision this week and local bank earnings set for Feb 9
Shares of Oversea-Chinese Banking Corporation (OCBC) hit a record S$21.29 on Friday, rising 70 Singapore cents as major lenders pushed the Straits Times Index (STI) to a fresh peak. United Overseas Bank (UOB) closed at S$39.50, while DBS ended at S$58.65. The STI touched 4,895.15 before settling at 4,891.45. Macquarie Capital upgraded UOB to “outperform” and reiterated its “outperform” rating on OCBC, setting a S$21.50 target. Singapore’s top three banks start releasing full-year results on Feb 9, with OCBC’s report due Feb 25. (The Straits Times)
The move is significant since banks make up a large part of Singapore’s equity index, turning trading into a direct signal on rates and fee income. Morningstar equity analyst Kathy Chan said local banks are “catching up,” highlighting market bets on a longer pause in U.S. rate cuts that would extend higher interest earnings. SGX market strategist Geoff Howie pointed out stronger January turnover and noted OCBC topped the local market with net inflows. (The Business Times)
OCBC is pushing to broaden its fee income. The bank recently launched a dedicated securities financing unit within its global markets division to tap into demand from institutional clients. This setup allows clients to generate fees by lending out idle equities and bonds. Jansen Chua leads the team, reporting directly to global markets head Kenneth Lai. (ShareInvestor)
A separate filing late Friday revealed OCBC tapped 9,192 treasury shares—previously repurchased stock held by the bank—for employee share schemes. After the move, OCBC’s treasury shares stood at 10,787,948, with the shares used valued at S$137,772.46.
OCBC closed Thursday at S$20.59 before jumping on Friday, with roughly 7.4 million shares changing hands, per historical price data. During the session, the stock fluctuated between S$20.65 and S$21.29. (Yahoo Finance)
Traders are weighing if Friday’s close sets a fresh baseline or if the crowded trade is simply stretched too thin. Record highs often attract trend-following capital, but they can just as easily trigger profit-taking if the next catalyst falls short.
The rally’s vulnerability lies in the pace of rates. Should global yields fall faster than expected or rate cuts come sooner, banks’ net interest margins—the gap between loan earnings and deposit costs—would tighten, potentially weighing on 2026 profit forecasts. Loan-loss provisions, the reserves for bad debts, also remain a wildcard if asset quality deteriorates.
All eyes are on the U.S. Federal Reserve’s policy meeting set for Jan 27-28. The rate decision arrives Jan 28, alongside Chair Jerome Powell’s press conference. Any hint of when rate cuts might begin again could shake Asia bank stocks once Singapore markets reopen. (Federal Reserve)
Singapore’s bank earnings season is shaping up as the next major event: DBS is set to release its full-year 2025 results on Feb 9, with UOB reporting on Feb 24 and OCBC on Feb 25. Investors will be watching closely for guidance on loan growth, fee income, and dividends—key factors that will determine if OCBC’s record close can sustain momentum through February.
