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.

How to trade Singapore blue-chip stocks with IG

Are you bullish or bearish on DBS, OCBC, UOB and other Straits Times Index (STI Index) stocks? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:

  • Create a live or demo IG Trading Account or log in to your existing account
  • Enter <company name> or <ticket code> in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

React to global volatility

Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices 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.