CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

DBS Group share price drops to 6-month low as coronavirus toll rises

Singapore’s largest bank was one of many large-cap companies whose share value had suffered, in a week that was marred by grimmer coronavirus updates.

DBS Group, Singapore’s largest bank by market capitalisation, was last week’s most traded Singapore equity, based on IG data.

In terms of share price, the group also experienced one of the largest drops among Singapore blue-chip firms for the week ending 28 February, erasing 3.08% in value to a six-month low of S$24 per share on IG’s platform as of Monday 02 March.

DBS Group’s share price drop a reflection of uncertainty

The start of a new week did not yield much better outcomes, with the stock trading below S$24.40 a share for most of Monday’s market.

The money lender was not the only victim of the rapid decline, which came after some countries reported their first coronavirus cases, and the US reported its first case ‘without a known origin’ on Thursday 27 February.

Singapore stock benchmark Straits Times Index (STI), which tracks and tallies the performance of individual listings on the Singapore Exchange – including DBS, also suffered its steepest drop since July 2019, falling 3.82% to a 14-month low of 2,992.071.

Fellow local banks, namely OCBC and UOB, also saw share price descend 3.64% and 3.62% respectively in the previous week.

Go long or short on DBS Group shares by using IG's industry-leading trading platform.

Analysts downgrade DBS share price targets

Analysts were also conservative in their recent estimates of the company’s financial and stock performance.

OCBC’s research team had maintained a ‘hold’ rating and price target of S$27.50 on DBS Group’s stocks – following its Q4 earnings report for the 2019 fiscal year – stating that it expects ‘share price performance ahead to be influenced by the Hong Kong/China outlook’.

Meanwhile, UOB Kay Hian analyst Jonathan Koh maintained a ‘buy’ rating on the stock with a price target of S$28 per share, down from S$28.65 previously, while RHB Invest gave the stock a ‘neutral rating’ and lowered its price target from S$25.80 to S$24.80 per share.

CGS-CIMB researchers were more optimistic, on the rationale that all three major Singapore banks have a guided COVID-19 revenue impact of around 2%, which they believe is ‘relatively manageable’ barring any further credit cost changes.

They have reiterated an ‘overweight’ rating on DBS Group, and is their ‘preferred pick for having the least exposure to consumer segments at risk to the virus’ of approximately S$2 billion. They also envision that the bank’s current Common Equity Tier One ratio will help to ‘support dividends’ in 2020.

Finally, Maybank Kim Eng’s Thilan Wickramasinghe wrote that DBS’ provision expenses (as per its latest guidance) were ‘significantly lower than expected’. He is of the opinion that the risks going forward may increase, especially with the COVID-19 epidemic fallout now a major factor.

As a result, he had lowered his 2020 core-earnings forecast for the company by 2% to 5%. He had also reduced his share price target for the group’s listing to S$28.60 a share from S$29.92 previously, while maintaining a ‘buy’ rating in view of there still being a 13% upside in returns.

DBS Group shares are trading at S$24.42 per share as of Tuesday 03 March.

Trade DBS Groups shares and other Singapore blue-chip stocks with an IG account.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.