Singapore, Jan 27, 2026, 15:02 SGT — Regular session
- OCBC shares climbed roughly 1.4% in afternoon trading, despite a wider retreat in Singapore bank stocks on Monday
- Phillip Securities downgraded its rating to neutral, setting a S$20 target, which sits below the current trading price
- Traders are eyeing the U.S. Federal Reserve’s decision set for Jan. 28, along with OCBC’s full-year results coming Feb. 25
OCBC shares edged higher on Tuesday, clawing back some ground after recent losses, despite a local broker warning of limited upside following the stock’s strong run. The bank was trading up 1.38% at S$21.33 by 2:53 p.m. Singapore time, according to delayed exchange figures.
This matters since Singapore’s major banks now act as a stand-in for changing interest-rate bets. The U.S. Federal Reserve meets this week, and OCBC reports its annual results next month, pushing investors to weigh if the easiest gains in the rally have already passed.
Monday saw sharp selling pressure. OCBC dropped 1.2% to S$21.04, while DBS and UOB also declined, pulling the Straits Times Index down 0.6%.
Phillip Securities has cut OCBC’s rating to “neutral” from “accumulate,” maintaining a S$20 price target, MT Newswires reports. The stock was already trading above that level on Tuesday, limiting upside unless new earnings surprises emerge. MarketScreener Saudi Arabia
Macro factors have returned to the spotlight. “Mr Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Securities in Singapore,” told local media he anticipates the Fed will hold policy rates steady—a stance that’s gained broad acceptance in markets ahead of the decision. The Straits Times
Reuters says the Fed is likely to keep rates steady at 3.50%-3.75% during this week’s meeting. However, political pressures on the central bank are creating extra uncertainty.
OCBC’s next major event is its full-year 2025 earnings, set for Feb. 25 on the bank’s investor calendar. Market watchers often use that report to reassess net interest margin—the gap between loan earnings and funding costs—as well as credit expenses.
Bulls face a key risk if margins shrink quicker than anticipated—especially if global rate cuts come earlier or credit provisions climb from current levels. Another straightforward threat: valuation. Since shares have already surpassed several broker targets, even a small downgrade in guidance could sting more than usual.
Traders are set to focus on the Fed’s rate decision and Chair Jerome Powell’s press conference on Wednesday, Jan. 28 for hints on the future path. After that, eyes will shift to OCBC’s earnings report due Feb. 25.
