S$8 billion wiped off OCBC value as shares slide 5.8% in heavy trade
The lender is also the top traded stock by value
The lender, OCBC, saw its value plummet by S$8 billion on Wednesday as its shares slid 5.8%, marking its steepest decline in valuation this year. The bank's price-to-earnings multiple expanded by 46% this year, yet Citi downgraded the stock to "sell" with a target price of S$27.50, projecting a flat Q3 earnings outlook. The share price had plummeted from close to S$145 billion on Tuesday to about S$136.4 billion by 12.30 pm.
In contrast, UOB and DBS fell by 1.74% and 1.34% respectively. Despite the heavy weightage of Singapore's banking trio in the ST Index, the index dipped by 1.42% at noon. Citi maintained its "buy" rating for DBS and "sell" for UOB, favoring UOB over OCBC due to better relative valuations. UOB Kay Hian's research director cited uncertainties from the Middle East conflict, rising bond yields, and ongoing monetary tightening as reasons for cautious optimism towards banks.
Notably, UOBKH still favored "buy" on OCBC, citing strong earnings growth in wealth management, accounting for 22% year-on-year growth in H1 2026.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- S$7 billion wiped off OCBC value as shares slide 4.9% in heavy trade businesstimes.com.sg
