DBS, OCBC 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, OCBC and UOB

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

Weekly Market Review

1:54 - Macro Update

• Stocks saw a slight rebound last week, with the S&P 500 rising 0.5% to 5,668 and the STI gaining 2.3% to surpassing the 3,900 level.
• A key event was the Federal Reserve meeting, where rates remained unchanged at 4.25 to 4.5%, in line with expectations.
• While the Fed maintained its forecast for two rate cuts in 2025, investors are pricing in three cuts this year, potentially in June, September, and December.
• However, uncertainty remains high, leading to volatility in global bond yields.
• The US 10-year bond yield has fluctuated as investors assess various factors, including inflation data, employment reports, and potential trade policies from President Trump.

STI Top performers:

• Yangzijiang Shipbuilding
• Sembcorp Industries
• ST Engineering
• Genting Singapore
• UOB

STI worst performers:

• CapitaLand Integrated Commercial Trust
• Hongkong Land
• Jardine Matheson
• Frasers Centrepoint Trust
• DFI Retail Group

5:20 - Singapore Banks 

• Singapore banks have delivered strong performances over the past year, significantly outpacing the broader STI Index gain of 21.8%.
• DBS led the gains with a near 40% increase, followed by UOB at close to 30%, and OCBC at 24.5%.
• Despite expectations of Federal Reserve rate cuts, all three banks posted record net profits in 2024, largely driven by robust double digit growth in non-interest income, while net interest income remained stable or saw slight moderation.
• DBS recorded the strongest net profit growth at 11%, while UOB and OCBC also saw grow of 2.6% and 7.2% respectively.
• Net interest margins (NIMs) have come under some pressure, with OCBC’s NIM declining from 2.29% in Q4 2023 to 2.15% in Q4 2024, while UOB remained relatively flat at 2%.
• DBS, however, managed to maintain its NIM stability, with 2.13% in Q4 2023 and 2.15% in Q4 2024, helping sustain its net interest income growth.
• Beyond traditional banking, Singapore banks have also benefited from higher assets under management, reflecting growth in wealth-related fee income across their private banking and retail segments.
• Capital management remains a key focus, with all three banks announcing dividend increases and share buyback programs.
• DBS raised its Q4 dividend per share to 60 cents introduced a quarterly capital return dividend of 15 cents for 2025, and launched a $3 billion share buyback program.
• UOB declared a total ordinary dividend of $1.80 per share in 2024, supplemented by a special dividend of 50 cents and a $2 billion buyback.
• OCBC announced a total ordinary dividend of 85 cents per share, along with a special dividend of 16 cents and a $2.5 billion capital return plan over two years.
• These moves indicate a strong commitment to returning capital to shareholders and enhancing investor returns.
• Given the announced dividend payouts, Singapore banks could offer a potential dividend yield of 5.9% or higher.

Read also: DBS, UOB and OCBC raise dividends. Still attractive at 6% yield?

Related Links:

• DBS share price history and share price target
• OCBC share price history and share price target
• UOB share price history and share price target

15:50 - Technical Analysis

Dow Jones Technical Analysis

• The Dow Jones Index experienced a technical rebound last week, confirming a shift in momentum after weeks of downward pressure.
• The index bounced off the 200-day moving average, which now acts as a key support level at 42,000.
• The MACD indicator confirmed the rebound, with the MACD line crossing above the signal line, signaling upward momentum.
• The next resistance level is expected at 43,400, where the 50-day and 100-day moving averages converge.
• Additionally, the RSI, which had breached the oversold 30-point mark two weeks ago, has now broken above 14 days RSI moving average of 36, at 42 just 8 points away from the 50-point neutral level, signaling a potential uptrend.
• Moving forward, the index’s ability to stay above the 42,000 handle and push towards the upper bound of the Bollinger Band at 44,000 will determine the strength of this rebound.

S&P 500 Technical Analysis

• The S&P 500 experienced its first positive week after four consecutive weeks of decline, supported by signals from the Federal Reserve that the economy remains stable and a more tempered stance on tariffs from President Trump.
• The index rebounded above the 200-day moving average, now acting as key support at 5,749.
• MACD indicator has turned positive, confirming a technical rebound, while the RSI has climbed from the oversold 30-point level to 41, surpassing the 14-day RSI moving average.
• If the RSI breaches the 50-point neutral mark, the uptrend could accelerate further.
• Key resistance levels to watch are the 100-day moving average at 5,933 and the 6,000 level.
• Maintaining support above 5,750 will be crucial for sustaining the rebound, with momentum indicators determining whether the index can push past 5,900 in the coming sessions.

Nasdaq Composite Technical Analysis

• The NASDAQ Composite Index, the most volatile among the three major U.S. indices, experienced its first positive week after five consecutive weeks of decline.
• Despite this rebound, the index remains below its 200-day moving average at 18,439, currently sitting around 17,700, with the 20-day moving average acting as resistance.
• However, technical indicators signal a potential recovery, with the MACD turning positive and the RSI rebounding from oversold levels, rising to 40.
• If the index can break above the 18,400 level, momentum could accelerate.
• However, failure to breach the resistance could lead to further downside risks for tech stocks.

STI Technical Analysis

• The Straits Times Index (STI) rebounded strongly last week, gaining 2.38% and recovering losses from the previous weeks, bringing it back above the 3,900 level, just 25 points away from its all-time high from late February.
• Despite concerns over lower interest rates in the second half of the year affecting banks, the sector is expected to manage these challenges, while property stocks and REITs could benefit.
• Industrial stocks have also performed well, reinforcing the market's resilience.
• Technical indicators suggest further upside, with the RSI at a healthy 60 and the MACD staying positive for three consecutive sessions.
• The STI is expected to test resistance at 3,951, with support at the 50-day moving average around 3,860.
• Given the ongoing recovery in U.S. markets, investor sentiment remains stable, and the STI’s momentum appears poised to continue in the coming weeks.

What to look out for this week

• Monday, 24 March: Singapore inflation data
• Tuesday, 25 March: Singapore Savings Bonds (SSB) application closing date
• Wednesday, 26 March: Singapore 6-month Singapore T-bill auction, Beansprout webinar: What’s next for Singapore banks?
• Thursday, 27 March: Beansprout webinar: Introduction to Software-as-a-Service (SaaS) 

Get the full list of stocks with upcoming dividends here. 

Join our Beansprout Telegram group for the latest insights on Singapore stocks, REITs, bonds and ETFs.