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3 BIG Spore banks ....:))
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Adrianinsing
Elite |
02-Feb-2023 22:54
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Of the 3 - OCBC is most concerning ?
According to Business Times ( quote ) Other banks continue to lend against Adani debt. Bank of Singapore OCBC Banks private banking unit is continuing to offer margin loans for up to 70 per cent of the value of Adani dollar bonds, sources said earlier https://www.straitstimes.com/business/companies-markets/adani-embattled-indian-company-scraps-3b-share-sale |
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Ling9345
Master |
02-Feb-2023 20:22
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装 睡 的 人 永 远 是 叫 不 醒 ， u are the one | ||||
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FATABA
Supreme |
02-Feb-2023 20:06
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Ok u agree that interest rate will still go up ( does not matter .25 or .75 ADDED to the current base ) BANKS WILL STILL BENEFIT w higher NIM . Certainly I am not debating ( separate issue) if share price is going to go UP or corrected as there are thousand of other factors affecting the market. Definately Banks benefit from a higher interest rate / as to NPL etc is certainly another managment issue etc. Hv a nice evening
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Ling9345
Master |
02-Feb-2023 19:34
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Yes,interest rate this year will still go up,but not going to see 0.75,so bank will not benefit ,than is Time to go down,tech stock may benefit
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newbie19
Supreme |
02-Feb-2023 19:07
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Yes agree, all banks to high now..
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CheeryVGoh
Supreme |
02-Feb-2023 18:35
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Share prices of Singapore banks dip following expectations of Fed rate hikes endingTHU, FEB 02, 2023 - 10:48 AM
UPDATED THU, FEB 02, 2023 - 5:26 PM
AFTER the US Federal Reserve instituted a smaller hike of another 25 basis point in its policy rate as expected on Wednesday, the local banking trio were all trading in the red amid market expectations that the US central bank is close to the end of its hiking cycle. DBS : D05 -2.04%led the fall with a 2 per cent decline to S$35.08, OCBC : O39 -0.77% slid 0.8 per cent to S$12.88 and UOB : U11 -0.34% slipped 0.3 per cent to S$29.63 on Thursday (Feb 2). The trio were among the six losers on the 30-stock Straits Times Index (STI), with DBS being the top loser. The banks have been beneficiaries of policy rate hikes by the Fed, with their bread and butter &ndash net interest margins (NIMs) &ndash rising in tandem with higher borrowing costs. The Fed lifted the target for its benchmark rate by a quarter percentage point to a range of 4.5-4.75 per cent. The smaller move followed a half-point increase in December and four jumbo-sized 75 basis point hikes prior to that. Chairman Jerome Powell made some nuanced arguments about being data dependent and more hikes still on the table. Phillip Securities Research senior analyst Terence Chua told The Business Times that some weakness from banks is expected in the near term, as the continued rate hike cycle dampens demand growth even as banks&rsquo NIMs go higher. However, in the longer term, banks will see improvements in their bottom line driven by higher NIMs, though non-performing loans could also potentially weigh on their profits. Tan De Jun, assistant manager of the research & portfolio management team at online brokerage platform FSMOne.com, said higher for longer interest rates are likely to be negative for Singapore real estate investment trusts (Reits) in general as they will eventually be forced to refinance their expiring loans at higher rates, resulting in a higher interest expense. Furthermore, property values could be challenged. Property valuations are a function of discount rates or capitalisation rates, as well as net income. &ldquo The estimated fair value of a property would decrease if discount rates or cap rates rose due to higher interest rates. A recession will likely result in a broad slowdown in commercial leasing activity, which could put downward pressure on rental rates and the potential for further distribution per unit deterioration for Reits,&rdquo Tan said. Despite opening marginally higher on Thursday, the STI ended 0.4 per cent lower as the banking trio accounts collectively for over 40 per cent of the blue-chip barometer&rsquo s weighting. This contrasted with the performance of the Wall Street and most key Asian bourses, which were buoyed by the smaller rate hike and the Fed possibly stopping further rate increases soon. Ray Sharma-Ong, investment director of multi-asset investment solutions, at global investment and asset manager, abrdn, said: &ldquo We do think that the Fed is close to the end of its hiking cycle, with the statement acknowledging that it is nearing a sufficiently restrictive stance.&rdquo abrdn expects the policy rate to peak at 5-5.25 per cent, with risks to the upside should labour market data not soften. DBS Group Reserve has observed that a dovish undertone was detected both with respect to the peak rate and the possibility of easing within the year. Despite the market expecting the Fed being on track to stop hiking, there are doubts over whether a pivot to cut rates would ensue soon after. DBS research noted that with the economy heading closer towards a Goldilocks environment &ndash one that stems from a more resilient US and Europe plus China&rsquo s rapid reopening &ndash there may not be any urgency for the Fed to cut rates that soon, let alone cut by that magnitude. It thinks that the market pricing rate cut over the next two years seems excessive, as the US two-year Treasury bill yields are now close to the floor of their recent range and the market is now pricing in close to 200 basis points of rate cuts from peak in the second quarter this year to end-2024. Jason England, global bonds portfolio manager at asset manager Janus Henderson Investors, pointed out that there is a divergence between the Fed&rsquo s presumed position of holding peak rates for the rest of 2023 and market expectations of a cut by year&rsquo s end. It might result in &ldquo someone getting caught offsides rises considerably&rdquo . England said: &ldquo So, while we expect rates markets &ndash and other asset classes &ndash to trade in a range-bound manner in coming months, as the true path of the economy emerges, we would not be surprised to see a spike in volatility as the market adjusts to a yet-to-be-determined reality.&rdquo Kerry Craig, global market strategist at JP Morgan Asset Management (JPAM), believes that inflation and rates will continue to dominate the market narrative for the first quarter, but investors are being presented with an increasing array of investment opportunities given the differing regional growth rates and the reversal of the higher inflation and higher rate theme from 2022. For bond investors, higher government bond yields means adding duration is a more appealing prospect, while the credit market continues to offer a safer way to pick up yield for income seekers. For equities, the skirting of a recession in Europe and acceleration of growth in China at a time when relative valuations are in their favour means investors may see improving returns from markets outside the US, the JPAM strategist said. &ldquo Clarity on inflation and rates will determine whether the next leg in the equity market is higher or lower,&rdquo Craig added. |
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FATABA
Supreme |
02-Feb-2023 18:16
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Fed has mentioned that they will NOT cut interest rate this year. Yes the rise might be slow down or even hold ....but I dont think there is a chance to cut this year. Just my view
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Ling9345
Master |
02-Feb-2023 17:56
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All are too high, time to drop after interest rate going to go down | ||||
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Echoes
Senior |
02-Feb-2023 17:42
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The 52 wk high of the 3 banks achieved 1 year ago ( Feb 22 ) are : DBS 37.49 OCBC 13.54 UOB 33.33 After todays closing , their prices and discount are : DBS 35.08 , -6.43% OCBC 12.88 , -4.87% UOB 29.63 , -11.1% So despite DBS' s drop of 2% today , it is still UOB which has more catching up to do if we were to benchmark them against their 52 wk highs . |
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CheeryVGoh
Supreme |
02-Feb-2023 17:23
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After Feds interest rate hike of 0.25, DBS power run south. Next few days back to 35.8+ to 36, my wish.
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FATABA
Supreme |
02-Feb-2023 16:49
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Hmm uncomfortable w the big drop today ....below $35... and so high volume of 5.8m lot W result n dividend coming up soon 13rd / this is unusual action . Hope no bad news Dyodd
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CheeryVGoh
Supreme |
02-Feb-2023 13:28
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I bgt back at 35.26 just now.... Hope good news soon ! | ||||
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FATABA
Supreme |
02-Feb-2023 11:14
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DBS dropped 65c ......13rd Feb result ....hmm anyone any bad news ? | ||||
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FATABA
Supreme |
02-Feb-2023 10:09
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all 3 banks corrected from their high w a realistic qtr point rise . However note Feb inpu this may not be the last rise this year . It really does not matter qtr or half point rise ...as it is STILL a rise and all cost still would have to bear this rise. NIM for banks wld be good Dyodd |
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FATABA
Supreme |
30-Jan-2023 10:59
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Wow another 2 wks to DBS result on 13rd Feb ....another valentine gift from DBS ...lol OCBC n UOB are both powering up above 13 n 30 .......I believe another qtr pt rise in interest will be catalyst for our banks before the result Happy investing. |
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CheeryVGoh
Supreme |
26-Jan-2023 17:45
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Agree.
HUAT 兔 gether !
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FATABA
Supreme |
26-Jan-2023 17:00
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Any profit is good . Hope u make more on ALL 3 . Not long to wait...result nex mth. Huat
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CheeryVGoh
Supreme |
26-Jan-2023 15:12
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I took some profit at 35.74. Still have all 3. All the best !
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FATABA
Supreme |
26-Jan-2023 14:23
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Just my personal view, DBS is really on the high side , at 1.6X time its book . ( so I wont not enter into this counter) currently only having OCBC and UOB and I think might have some room to run up to the result season / n dividend. Pls DYODD
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CheeryVGoh
Supreme |
26-Jan-2023 13:46
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Cong Xi Fa Cai , Huat Ah ! DBS highest this morning at 35.86, strong upside yty & this morning. What is your target selling price ?
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