Optimism drives DBS, OCBC and UOB share prices to 3-month high
Shares of Singapore’s three main money lenders rose by an average of 11% this week amid global economic recovery hopes.
Share prices of Singapore’s three main banks opened at a three-month high on Thursday 04 June 2020, on the back of improved market sentiments driven by hopes of a global economic recovery.
DBS, OCBC and UOB shares up by 11% this week
DBS Group, the most lucrative company and money lender in Singapore by market capitalisation, saw its shares start the day at S$22.275 – 2.3% higher than the previous day’s closing price.
IG trading data showed that Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB) – the second and third placed largest financial institutions in the country, also marked up 2.2% and 1.7% at market open on Thursday.
All three banks have seen their share prices increase by an average of 11% since the start of the trading week, as risk-on investment sentiments returned to equity markets once again, with governments easing their lockdowns and movement restrictions.
US equity benchmarks S&P 500, Dow Jones Industrial Average and Nasdaq 30 – which drive much of the global trading sentiment, including Singapore’s – closed higher for the fourth consecutive day on Wednesday 03 June 2020.
IG is a world-leading online trading and investments provider for thousands of financial markets. With CFDs (read about them here), you can buy long or sell short on DBS, OCBC and UOB depending on whether you think prices will rise or fall. Start today by opening a live or demo IG account.
‘Phase one’ of Singapore’s lockdown easing underway
In Singapore, the government has also moved into the so-called ‘phase one’ of its lockdown easing on Tuesday 02 June, as the number of Covid-19 infections within the community continue to remain low.
As part of this initial reopening phase, more schools, offices and businesses – including those in the manufacturing sector, are allowed to reopen.
If the community transmission rates stay low and stable over the subsequent few weeks, and the foreign worker infection rates – where the bulk of cases have been reported – are kept under control, the government will move into a ‘phase two’.
‘Risk-on mood’ to continue in the near term
This can only bode well for the Singapore’s economic recovery, and domestic market sentiments.
For now, IG Asia market strategist Pan Jingyi foresees that the current ‘risk-on mood’ will continue in the near term across Asia markets, with the optimism also enabling Singapore’s blue-chip barometer Straits Times Index (STI Index) prices to hold its ground above the 50% Fibonacci retracement level of around 2709 on Thursday morning.
DBS, OCBC and UOB closed Thursday’s session at S$21.90, S$9.29 and S$21.65 per share respectively.
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