Singapore, Jan 17, 2026, 14:53 SGT — Market closed
Shares of United Overseas Bank Limited closed Friday up 0.9% at S$36.74, mirroring gains across Singapore’s big three banks as the Straits Times Index ticked up 0.3% by the close. Interactive Brokers senior economist Jose Torres pointed to “bullish sentiment” returning on Wall Street following Taiwan Semiconductor Manufacturing’s earnings, which helped steady risk appetite heading into the weekend. (The Straits Times)
This matters because UOB, DBS, and OCBC have a bigger influence on Singapore’s benchmark than most sectors. With the market closed until Monday, investors will use the break to assess if the recent uptick reflects global sentiment or signals a more concrete shift linked to capital returns and funding moves.
UOB’s own documentation suggests the focus is on capital management. Regular buybacks, even if modest in size each day, can help steady the stock when markets turn volatile.
After the market closed, UOB reported buying back 38,000 shares on Jan 16, paying between S$36.32 and S$36.74 each, for a total of around S$1.39 million. The bank has since cancelled those shares. According to the filing, UOB has repurchased roughly 19.2 million shares under its April 2025 mandate, accounting for about 1.15% of its issued stock. (SGX Links)
The buyback is standard procedure, yet it remains noticeable. Traders will be keen to see if the bank maintains this pace once Singapore reopens on Monday, especially if regional bank stocks begin responding to bond yield fluctuations again.
UOB has moved in the funding markets, pricing S$850 million of 3% perpetual capital securities under its global medium-term note programme, according to a company announcement. The issue date is set for Jan 21. These securities are callable starting in 2033 and will reset every seven years based on a spread over the seven-year Singapore Overnight Rate Average OIS, a swap benchmark tied to overnight rates. (The Business Times)
Perpetual capital securities, known as Additional Tier 1 or AT1, occupy a space between debt and equity. These instruments lack a fixed maturity date, and banks can suspend payouts under specific circumstances. As a result, investors see them as a riskier form of funding despite often modest headline coupons.
But the stock isn’t just riding on buybacks. UOB’s fate still hinges on the usual banking factors: interest rate trends, loan demand, and credit costs. Should benchmark rates drop quicker than anticipated, lending margins could shrink, while any slowdown in the regional economy would put asset quality under pressure.
Investors should watch for Feb 24, the day UOB is set to publish its full-year 2025 results ahead of market open, per a filing with the Singapore Exchange. (SGX Links)
