Bank share losses drag Singapore’s STI down almost 2.2 per cent
UOB fell 4.8 per cent and OCBC lost 4.2 per cent in morning trading on Oct 8, as interest-rate and oil-market concerns weighed on investors.
Singapore’s banking shares drove a retreat in the Straits Times Index on Oct 8, with the benchmark reaching 5,487.65 at 9.54 am. It was down 120.79 points, or almost 2.2 per cent, as Asian equities followed losses in the US.
At 10 am, UOB traded at S$40.39, a fall of S$2.05, or 4.8 per cent. OCBC declined S$1.28, or 4.2 per cent, to S$29.02, while DBS shed S$2.51 to reach S$74.98.
Malaysia’s KLCI slipped 0.5 per cent, while Hong Kong’s Hang Seng Index eased 0.2 per cent. In the preceding US session, both the Nasdaq and S&P 500 closed 0.22 per cent lower; the Dow lost 0.66 per cent.
Tiger Brokers market strategist James Ooi attributed weak sentiment to pressures in oil and bond markets. He said the recent rally in Singapore bank shares may have left investors more responsive to earnings risks. Rising interest rates could increase returns on loans and new assets, he added, but would also increase deposit and other funding costs.
Brent was around US$101.20 a barrel, up one per cent. Oil-related inflation worries persisted after the US Federal Reserve increased rates in September, its first rise since 2023.
