DBS, OCBC, and UOB 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 divergence between Singapore and US markets as renewed Middle East tensions lifted oil prices and bond yields. We also look at why Singapore banks continue to outperform on higher interest rate expectations and stronger wealth management income, alongside the technical outlook for the STI and major US indices ahead of the peak of the US earnings season.

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

Weekly Market Review

2:10 - Macro Update

• US markets retreated last week, with the S&P 500 falling 1.6% and the NASDAQ declining 2.9%, as AI-related stocks came under pressure amid concerns over memory oversupply and elevated valuations.
• In contrast, the STI continued its record-breaking run, climbing above the 5,500 level as investors rotated into Singapore banks on expectations that interest rates could remain higher for longer.
• Although US inflation data showed the first month-on-month decline in many years, renewed fighting in the Middle East pushed Brent crude oil prices back up to around US$88 per barrel, raising concerns that inflation could reaccelerate.
• US government bond yields remained above 4.5%, supporting the outperformance of Singapore banks while continuing to weigh on interest rate-sensitive sectors such as REITs.
• Among the stronger-performing Singapore stocks last week, Hongkong Land gained 4.5% while OCBC rose a further 4.1%, extending the strong rally in the banking sector.
• On the weaker side, Sembcorp Industries fell 5.6%, Venture declined 5.2%, while ST Engineering retreated 4.8% following their recent strong gains.

STI Top Performers:

• Hongkong Land
• OCBC
• Keppel DC REIT
• SATS
• Mapletree Pan Asia Commercial Trust

STI Worst Performers:

• City Developments
• UOB
• ST Engineering
• Venture
• Sembcorp Industries

Companies in Focus: 

DBS (SGX: D05)

• DBS became the first Singapore-listed company to exceed a S$200 billion market capitalisation after its share price climbed above S$70.
• Expectations of a recovery in short-term interest rates have improved the outlook for net interest income after margins came under pressure earlier in the year.
• Wealth management remains a key growth driver, with assets under management reaching a record S$492 billion in the first quarter of 2026. DBS has also set an ambitious target of S$1 trillion in assets under management by 2030.
• The bank continues to maintain a strong capital position with a CET1 ratio of 17%, supporting attractive dividends. However, its valuation has become more demanding, with its price-to-earnings ratio rising to around 18 times, above its historical average.

Read also: 

• DBS, OCBC and UOB hit record highs in July 2026. What could drive them higher beyond dividends
• [Pro] What DBS’s S$1 trillion AUM target means for my Singapore bank allocation

Related Links:

• DBS (SGX: D05) latest valuation, share price and analysis
• DBS (SGX: D05) dividend history and dividend forecast

OCBC (SGX: O39)

• OCBC has continued to outperform the other Singapore banks, supported by strong growth in wealth management and non-interest income.
• First-quarter non-interest income increased 22.6% year on year, outperforming both DBS and UOB as stronger wealth management activity continued to drive fee income growth.
• Assets under management increased to S$342 billion, reflecting continued capital inflows into Singapore and strengthening the bank's wealth management franchise.
• While OCBC continues to generate healthy returns on equity and maintains a strong CET1 ratio of 17%, its valuation has also risen above historical averages following its strong share price performance.

Read also: DBS, OCBC and UOB hit record highs in July 2026. What could drive them higher beyond dividends

Related Links:

• OCBC (SGX: O39) latest valuation, share price and analysis
• OCBC (SGX: O39) dividend history and dividend forecast

UOB (SGX: U11)

• UOB has lagged behind DBS and OCBC this year as weaker wealth management income has resulted in slower earnings growth.
• Although its capital position remains healthy with a CET1 ratio of 15.3%, earnings growth has been more subdued than its peers.
• UOB currently trades at the lowest valuation among the three Singapore banks, with its price-to-book ratio of around 1.5 times and price-to-earnings ratio closer to historical averages.
• Investors will be watching whether UOB can narrow the gap with DBS and OCBC through stronger wealth management growth in the upcoming earnings season.

Read also: DBS, OCBC and UOB hit record highs in July 2026. What could drive them higher beyond dividends

Related Links:

• UOB (SGX: U11) latest valuation, share price and analysis
• UOB (SGX: U11) dividend history and dividend forecast

Technical Analysis

Straits Times Index

• The STI continued its record-breaking rally, reaching a new all-time high of 5,561 before ending the week at 5,509, with the 5,500 level expected to become an important psychological support heading into the earnings season.
• Immediate support is around the 20-day moving average near 5,340, while stronger support is seen around the lower Bollinger Band near 5,060. Resistance remains near the upper Bollinger Band around 5,620.
• The RSI remains elevated at around 74 after peaking above 80, suggesting the STI remains overbought and may experience a period of consolidation.
• While a near-term pullback is possible, the broader uptrend remains intact, with earnings from the Singapore banks likely to determine the next move.

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

Dow Jones Industrial Average

• The Dow Jones has held up better than the broader US market, supported by strong earnings from the major US banks at the start of the earnings season.
• Immediate resistance remains at the all-time high near 53,289, while support is around 51,600 to 51,500.
• The RSI has eased to around 52, indicating that momentum has moderated but remains close to neutral.
• Investors will continue watching bank earnings to determine whether the Dow can retest its recent highs.

S&P 500

• The S&P 500 weakened last week as renewed Middle East tensions and higher oil prices weighed on sentiment towards large-cap technology stocks.
• Immediate resistance is around 7,600, while support remains at 7,340, followed by the important 7,300 level that has held on several occasions.
• The RSI has slipped below the neutral 50 level, suggesting that momentum has softened in the near term.
• A resolution to the Middle East conflict and stronger-than-expected corporate earnings could help the S&P 500 challenge the 7,800 level by year-end.

Learn more about the S&P 500 index here.

Nasdaq Composite Index

• The NASDAQ remained the weakest-performing major US index as investors reassessed AI valuations amid concerns over competition and slowing momentum in the sector.
• Sentiment was also affected by reports of a potential IPO by Chinese AI company Moonshot, adding to concerns about increasing competition in the AI industry.
• Immediate resistance is around 26,500 to 26,700, while key support remains around the 25,000 level.
• With the RSI at around 44, momentum remains weak, although upcoming earnings from the major US technology companies could provide the next catalyst for the sector.

Learn more about the Nasdaq Composite index here.

What to look out for this week

Key dates

• Monday, 20 Jul: CSOP iEdge S-REIT Leaders Index ETF ex-dividend
• Wednesday, 22 Jul: SATS Ltd ex-dividend, Alphabet, Tesla earnings
• Thursday, 23 Jul: Keppel DC REIT, Mapletree Industrial Trust, Suntec REIT earnings, Singapore 1-year T-bill auction, Intel earnings
• Friday, 24 Jul: iFast Corp earnings

Get the full list of stocks with upcoming earnings and upcoming dividends.

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