UOB share price: What’s the latest amid new Covid-19 fears?

Shares of United Overseas Bank opened 5.2% lower on Monday, as a new wave of Covid-19 cases emerged in China and the US over the weekend.

Shares of United Overseas Bank (UOB) plunged 5.2% as the market reopened on Monday 15 June 2020, amid growing concerns over a second wave of Covid-19 infections.

Singapore’s third largest money lender saw its share price slide further ten minutes into trading, dropping to S$21.11 a share – its lowest level in two weeks.

Risk-off mood still in action this week

As IG Asia market strategist Pan Jingyi wrote in her latest client note, a risk-off mood has carried over into Asia this week, despite the Wall Street retracement that had taken place on Friday.

‘The market remains in contemplation as to whether prices had overran with the initial reopening optimism after last week’s dip post the recent surge in prices,’ Pan wrote, adding that new cases recorded in Beijing and various states across the US were also fuelling fresh concerns among investors.

This apprehension appears to be gaining momentum for now. As at 11:30 SGT on Monday, Singapore’s main stock benchmark Straits Times Index is down roughly 1.2% from Friday’s closing.

UOB’s share price soared nearly 17% at the start of June

In the last one month, UOB – like most other equities – has experienced a massive rebound in share price, as investor sentiments became increasingly optimistic on the back of Covid-19 lockdown easing around the world, as well as here in Singapore.

Are you looking to trade stocks of UOB and other Singapore finance companies but don't want to buy and sell the actual assets? You can explore CFD trading by signing up for an IG account.

Singapore entered a so-called ‘phase one’ of its lockdown easing on 02 June 2020, under which firms in the manufacturing and services sector, among others, were allowed to resume operations.

Following that, UOB’s share price soared nearly 17% to a three-month high of S$23.15 on 10 June 2020.

Prices have retraced since, but remain lifted by at least 6% from May 2020’s average range of between S$19.30 to S$19.90 a share.

UOB has an average share price target of S$19.97

For now, the government has indicated that it will move into a ‘phase two’ if community transmission rates stay low and stable over the subsequent few weeks, and foreign worker infection rates – where the bulk of cases have been reported – are kept under control.

Earlier this month, Singapore’s three main banks – namely UOB, alongside DBS and Oversea-Chinese Banking Corporation (OCBC) – saw their stock prices increase as much as average of 11%, as countries globally began to map out their economic recovery plans.

As of 15 June 2020, UOB has received a consensus 12-month share price target of S$19.97 from five analysts, based on reports dating back a month.

How to trade Singapore stocks with IG

Are you feeling bullish or bearish on UOB, DBS Group, OCBC and other Straits Times Index (STI Index) stocks? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's world-class trading platform 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
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

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

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

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.

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.