OCBC, UOB and Parkway Life REIT in focus: Weekly Review with SIAS

What happened?  

In this week’s Weekly Market Review in partnership with the Securities Investors Association Singapore (SIAS), we discuss the continued rally in US markets, easing oil prices and bond yields, alongside the latest earnings updates from OCBC, UOB, and Parkway Life REIT.

Watch the video to learn more about what we are looking out for this week.

Weekly Market Review

1:23 - Macro Update

• US markets continued to hit fresh record highs last week, with the S&P 500 gaining 2.3% to close near the 7,400 level, while the NASDAQ surged 4.5%, driven by strong performance in AI-related and hardware technology stocks.
• The STI posted a more modest gain of 0.2% as investors digested a busy Singapore earnings season with mixed corporate results.
• Sentiment improved after hopes of progress in resolving the Middle East conflict pushed oil prices below US$100 per barrel, easing concerns around inflation and economic growth.
• US government bond yields and Singapore government bond yields both declined further, with the Singapore 10-year government bond yield falling below 2.1% after reaching 2.4% in recent weeks.
• The decline in bond yields supported a rebound in Singapore REITs, with Frasers Logistics & Commercial Trust gaining 3.6% during the week.
• Among the stronger-performing Singapore stocks, Venture Corporation rose 12.5% after its first-quarter business update, supported by stronger sentiment towards hardware and AI-related technology names.
• On the weaker side, Yangzijiang Shipbuilding, CapitaLand Investment, Sembcorp Industries, SGX and Frasers Centrepoint Trust were among the laggards last week.

STI Top Performers:

• Venture
• Jardine Matheson
• Hongkong Land
• Frasers Logistics & Commercial Trust
• Wilmar

STI Worst Performers:

• Frasers Centrepoint Trust (FCT)
• SGX
• Sembcorp
• CapitaLand Investment
• Yangzijiang Shipbuilding

Companies in Focus: 

OCBC (SGX: O39)

• OCBC has been the best-performing Singapore bank stock in 2026, supported by stronger earnings momentum and optimism around its wealth management business.
• The bank reported first-quarter 2026 net profit of S$1.97 billion, up 5% year on year and above market expectations.
• While net interest income declined due to lower Singapore interest rates, overall income was supported by stronger non-interest income, particularly from wealth management and fee-related activities.
• Management maintained its 2026 financial targets despite uncertainty from Middle East tensions, expecting total income to remain stable to growing.
• OCBC also reaffirmed its commitment to a 50% ordinary dividend payout ratio and to complete its S$2.5 billion capital return plan by FY2026.
• At current levels, OCBC is trading at about 1.6 times price-to-book, above its historical average, supported by its stronger return on equity profile.

Related Links:

• OCBC (SGX:039) latest valuation, share price and analysis
• OCBC (SGX:039) dividend history and dividend forecast
• OCBC reports 5% rise in net profit: Our Quick Take

UOB (SGX: U11)

• UOB has lagged behind DBS and OCBC this year, with investors focusing on its relatively weaker fee income growth.
• The bank reported first-quarter 2026 net profit of S$1.43 billion, down 4% year on year from S$1.49 billion previously.
• Like OCBC, UOB saw net interest income decline as interest rates eased, with net interest margin falling to 1.82% from 2.0% a year ago.
• However, unlike OCBC, UOB also experienced weaker fee income performance, particularly in wealth management-related fees, which contributed to softer overall income growth.
• Credit quality remained healthy, with credit costs at around 26 basis points and still within management expectations.
• Looking ahead, UOB maintained its 2026 guidance, expecting full-year net interest margin of between 1.75% and 1.8%, alongside high single-digit fee income growth.
• At current levels, UOB trades at about 1.25 times price-to-book, representing a discount to OCBC and DBS due to its relatively weaker earnings growth outlook.

Related Links:

• UOB (SGX: U11) latest valuation, share price and analysis
• UOB (SGX: U11) dividend history and dividend forecast
• UOB reports 4% decline in 1Q26 profit: Our Quick Take

Parkway Life REIT (SGX: C2PU)

• Parkway Life REIT reported a strong first-quarter 2026 result, with distribution per unit rising 15.1% year on year to 4.42 cents, largely driven by higher contribution from its Singapore assets.
• Parkway Life REIT has also achieved uninterrupted recurring DPU growth since its IPO, which has contributed to its appeal among income-focused investors looking for stable and predictable distribution growth.
• On the balance sheet side, gearing remained healthy at 34.2%, while the interest coverage ratio stood at a comfortable 8.4 times.
• At current levels, Parkway Life REIT is expected to offer a distribution yield of about 4.1% in 2026. While this may appear lower than some other Singapore REITs, investors may be willing to accept the lower yield in exchange for greater certainty and stability in its distribution growth profile.

Related Links:

• Parkway Life REIT (SGX: C2PU) latest valuation, share price and analysis
• Parkway Life REIT (SGX: C2PU) dividend history and dividend forecast
• Parkway Life REIT: Singapore Hospitals Drive 15.1% DPU Growth

Technical Analysis

Straits Times Index

• The STI continues to trade near the 5,000 psychological level after posting a modest gain last week, although momentum remains more muted compared to the US markets.
• Immediate support is around 4,900, while stronger support remains at 4,790, referencing the January low. Resistance is seen near the year-to-date high around 5,041.
• The RSI is hovering around the neutral 50 level, suggesting that momentum remains balanced without a strong directional bias.
• The MACD remains slightly negative, although downside momentum has started to ease as the MACD line moves closer to the signal line. A bullish crossover could indicate another attempt to retest the year-to-date high.
• For now, the STI appears likely to remain range-bound between 4,900 and 5,000 as investors continue to monitor earnings season and macro developments.

Learn more about the Straits Times Index (STI) here.

Dow Jones Industrial Average

• The Dow Jones continued to lag behind the NASDAQ and S&P 500, although it remains close to its recent highs following the strong rally in recent weeks.
• Immediate support is around 48,400, while resistance remains near the psychological 50,000 level and the previous high around 50,500.
• The RSI remains constructive at around 62, although momentum is no longer as strong as during the earlier phase of the rally.
• The MACD remains positive, but the MACD line has started converging towards the signal line, suggesting that upside momentum is moderating and that the index may enter a period of consolidation.
• For now, the Dow still looks technically constructive, though investors may start to see more profit-taking after the recent rebound.

S&P 500

• The S&P 500 climbed to another fresh all-time high last week, approaching the 7,400 level as optimism around AI-related technology stocks continued to support the broader market.
• Immediate resistance is around 7,500, while support is seen near the previous breakout zone around 7,000.
• The RSI has moved deeper into overbought territory at around 75, suggesting that the rally may be increasingly stretched in the near term.
• The MACD remains positive, although the gap between the MACD line and signal line has narrowed, pointing to slowing upside momentum despite the continued uptrend.
• For now, the S&P 500 could continue testing higher levels, though the setup suggests that the market may become vulnerable to short-term pullbacks if sentiment weakens.

Learn more about the S&P 500 index here.

Nasdaq Composite Index

• The NASDAQ remained the strongest-performing major US index and climbed to a fresh all-time high of around 26,247, supported by strong gains in AI-related and hardware technology stocks.
• The next major resistance level is around the 27,000 psychological mark, while support is seen near 24,000, which corresponds to the previous breakout and double-top region from late 2025 and early 2026.
• The RSI has surged to around 80, which is an unusually elevated level and suggests that the NASDAQ is now heavily overbought in the near term.
• The MACD remains positive, but the MACD and signal lines are starting to converge, which could indicate a potential pullback if negative catalysts emerge.
• If a retracement takes place, the NASDAQ could retest the 24,000-support zone, which now appears to be the key level to watch after the recent breakout rally.

Learn more about the Nasdaq Composite index here.

What to look out for this week

Key dates

• Monday, 11 May: SIA Engineering earnings, DBS Group ex-dividend
• Tuesday, 12 May: NTT DC REIT earnings, Soilbuild Construction Group ex-dividend, SIAS Corporate Connect: Propnex, US CPI
• Wednesday, 13 May: OUE Limited ex-dividend, US Production Price Index, Cisco earnings
• Thursday, 14 May: Singapore Airlines, CSE Global earnings, Frasers Logistics & Commercial Trust ex-dividend, US retail sales, Applied Materials earnings
• Friday, 15 May: First Resources earnings, AIMS APAC REIT ex-dividend 

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

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