DBS, OCBC shares climb to fresh highs on strong Q2 earnings; yen rally stalls: Markets this week
DBS and OCBC raised their 2026 financial targets, while UOB kept its guidance largely unchanged.
This week in Singapore and global markets, DBS and OCBC shares soared to record highs following strong second-quarter earnings driven by their wealth management businesses. OCBC crossed the $30 mark for the first time, closing at $30.30, while DBS closed at $76.33. UOB's stock, however, lagged behind, ending down 0.23%. DBS will pay shareholders $0.81 per share in dividends, whereas OCBC will distribute $0.47 per share.
UOB will return $0.88 per share. Macquarie Capital's ASEAN equity research head noted that UOB's net interest margin decline of 8 basis points was the largest among the three banks. UOB's non-performing assets rose to $902 million in the second quarter, a 90% increase year on year, due to one problematic real-estate account in Greater China.
The Japanese yen struggled against the US dollar, reaching 157.80 per dollar on Aug 7, down from 155.20 on Aug 3, but remains stronger than a multi-decade low of about 164. Factors contributing to the yen's weakness include the Bank of Japan's high interest rates relative to other major economies, Japan's massive debt burden, and concerns over its persistent budget deficits.
The Middle East conflict has also added pressure on the yen. While SpaceX shares gained 20.5% to close at $133.11 following the expiration of an insider share lockup period, AI stocks surged as analysts remained optimistic about the sector's long-term prospects. Brent crude oil climbed above $83.55 a barrel, driven by uncertainty over the Strait of Hormuz negotiations, while gold prices surged above $4,300 an ounce, buoyed by weaker-than-expected US jobs data and expectations of lower Federal Reserve interest rates.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
