DBS and UOB in focus: Weekly Review with SIAS

What happened?

In this week's Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss key developments in the global equity market and also share more about DBS and UOB.

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

Weekly Market Review

1:57 - Macro Update

• The S&P 500 exceeded 6,000 points last Friday before closing just slightly below that level, representing a 3.2% gain.
• The Nasdaq and Dow Jones also had positive gains of 4.1% and 4.5% respectively.
• The STI exceeded the 3,700 levels, with a 3.6% gain.
• Trump has won the electoral college with 312 votes, positioning him as the next U.S. president. This outcome has led to a further bounce in the US bond yields.
• The Fed cut interest rates by another 25 basis points, which was in line with market expectations.

5:00 - Singapore market updates

STI Top performers:

• UOB
• DBS
• Yangzijiang Shipbuilding Holdings Ltd
• OCBC
• Jardine Matheson Holdings Ltd

STI worst performers:

• Frasers Logistics & Commercial Trust
• Genting Singapore Ltd
• Frasers Centrepoint Trust
• Mapletree Industrial Trust
• Mapletree Pan Asia Commercial Trust

6:46 - DBS

• DBS reached an all-time high share price after posting strong Q3 results.
• Total income was up by 11% and net profit grew 17% year-on-year to $3 billion—a record quarterly profit.
• Net interest margin at the group level came down slightly in the third quarter to 2.11% from 2.14% in the previous quarter, a reflection of the slight decline in interest rates over the past quarter.
• The slight decline in net interest margin was offset by the increase in fee income, particularly wealth management fees, which rose 55% year-on-year to $609 million.
• DBS declared an interim dividend of $0.54 and announced a $3 billion share buyback program to support its share price.
• The bank expects 2025 net interest income and pre-tax profit to be close to 2024 levels, though net profit may be slightly lower due to a potential tax increase.
• DBS’s dividend yield remains near its historical average, but its price-to-book ratio is now 1.9x, above the historical average of 1.3x.

Read more: DBS reports 15% profit growth and unveils S$3 billion share buyback plan: Our Quick Take 

Related Links:

• DBS share price history and share price target
• DBS dividend history and dividend forecasts

11:35 - UOB

• UOB's share price surged nearly 10% on Friday, closing at $35.69.
• The bank reported an 11% year-on-year increase in its core net profit, and when adjusted for last year’s one-off expenses, the net profit rose by 16%.
• Total income for the third quarter grew by 11%, driven by a 1% increase in net interest income and a 7% rise in fee income.
• UOB effectively managed its expenses, resulting in a 10% year-on-year growth in operating profit.
• The bank's net interest margin remained stable at 2.05% for the third quarter, showing improvement from previous quarters.
• Fee income, especially from wealth management, was a significant growth driver, with total fee income reaching $630 million and wealth management fees increasing to $183 million from $146 million the previous year.
• In terms of valuation, UOB’s price-to-book ratio is 1.34x, which is above its historical average. The dividend yield stands at 4.9%, which is also above the historical average.
• Looking ahead to 2025, UOB anticipates high single-digit loan growth and double-digit fee income growth, expecting overall higher total income.
• The bank’s strong capital position also allows it to consider capital management initiatives like dividend increases or potential share buybacks, similar to DBS’s recent announcement.

Read more: UOB shares surge on strong profit growth and dividend upside potential: Our Quick Take

Related links:

• UOB share price history and share price target
• UOB dividend history and dividend forecasts

15:38 - Technical Analysis

Dow Jones Technical Analysis

• On Friday, the Dow Jones index briefly traded above 44,000 but closed just below it at 43,989 points.
• The MACD indicator remains positive, signaling continued uptrend momentum, with a possible increase of around 100 points.
• The RSI is at 68, close to the 70-point overbought level, which could trigger a technical pullback similar to past patterns.

S&P 500 Technical Analysis

• The S&P 500 reached a new all-time high and close on Friday, ending at 5,995 points.
• The MACD remains strong, suggesting the rally might continue this week.
• The RSI at 68 is near the overbought level, similar to the Dow Jones.

Nasdaq Composite Technical Analysis

• The NASDAQ Composite Index reached an all-time high at 19,318 points, slightly lagging behind the Dow Jones and S&P 500 on Friday.
• Momentum remains strong, with the MACD indicating potential for further gains.
• The RSI is at 68, just below the overbought level of 70. Historically, an RSI at 80, as seen in July, preceded a significant pullback.

STI Technical Analysis

• The STI is now at 3,724 points, within 5% of its 17-year high of 3,900 points, seen in October 2007.
• While the MACD remains positive, the RSI has moved into overbought territory, showing mixed signals.
• Therefore, it may be prudent to take profits now and wait for a pullback to 3,650 points to reaccumulate on the STI.

What to look out for this week

• Monday, 11 Nov: Lendlease Global Commercial REIT earnings
• Tuesday, 12 Nov: Frasers Hospitality Trust earnings, SGX Academy webinar: Unlock the potential of Hong Kong tech stocks with SDRs
• Wednesday, 13 Nov: Starhub and Singtel earnings
• Thursday, 14 Nov: DBS ex-dividend date
• Friday, 15 Nov: Alibaba earnings

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

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