Singapore, Jan 25, 2026, 14:47 SGT — Market closed
- OCBC jumped 3.4% on Friday, closing at a record S$21.29, lifted by a rally in Singapore bank shares that helped push the STI to fresh highs
- Macquarie’s upgrade of UOB, paired with upbeat forecasts for OCBC, kept the sector’s momentum alive
- Focus shifts to the Fed’s upcoming decision this week and earnings reports from local banks due Feb 9
Shares of Oversea-Chinese Banking Corporation (OCBC) climbed to a record S$21.29 on Friday, up 70 Singapore cents, as big banks helped push the Straits Times Index (STI) to new highs. United Overseas Bank (UOB) wrapped at S$39.50, while DBS closed at S$58.65. The STI peaked at 4,895.15 before settling at 4,891.45. Macquarie Capital upgraded UOB to “outperform” and kept its “outperform” call on OCBC, with a target price of S$21.50. Singapore’s three major banks will start reporting full-year results on Feb 9, with OCBC scheduled for Feb 25. The Straits Times
The move matters because banks make up a big chunk of Singapore’s equity index, turning trading activity into a direct read on interest rates and fee income. Morningstar equity analyst Kathy Chan said local banks are “catching up,” reflecting bets on a longer pause in U.S. rate cuts that would keep interest earnings elevated. SGX market strategist Geoff Howie flagged stronger January turnover and noted OCBC led the local market with net inflows. The Business Times
OCBC is expanding its fee income streams. The bank has set up a dedicated securities financing unit inside its global markets division, aiming to meet growing institutional client demand. This new team enables clients to earn fees by lending their idle equities and bonds. Jansen Chua heads the unit and reports directly to global markets chief Kenneth Lai.
A separate filing late Friday showed OCBC used 9,192 treasury shares—stock the bank had previously bought back—for employee share schemes. Following this, OCBC’s treasury shares dropped to 10,787,948, with the shares deployed worth S$137,772.46.
OCBC ended Thursday at S$20.59, then surged on Friday, trading about 7.4 million shares, according to historical price data. The stock swung between S$20.65 and S$21.29 during the day.
Traders are debating whether Friday’s close marks a new baseline or if the crowded trade has run out of steam. While record highs tend to draw in trend-followers, they can also prompt profit-taking if the next catalyst fails to deliver.
The rally is exposed to the speed of rate changes. If global yields drop more quickly than anticipated or rate cuts arrive earlier, banks’ net interest margins—the spread between loan income and deposit expenses—could shrink, putting pressure on 2026 profit estimates. Loan-loss provisions, the reserves set aside for bad debts, also pose a risk if asset quality worsens.
The U.S. Federal Reserve’s policy meeting is scheduled for Jan 27-28, with the rate decision coming on Jan 28, followed by Chair Jerome Powell’s press conference. Signs of when rate cuts could resume may rattle Asian bank stocks when Singapore markets reopen.
Singapore’s bank earnings season is looming as a key focus: DBS will unveil its full-year 2025 results on Feb 9, followed by UOB on Feb 24 and OCBC on Feb 25. Investors are keen for updates on loan growth, fee income, and dividends—critical signals to see if OCBC’s record close can keep its streak alive into February.
