Singapore shares end lower as local banks decline; STI falls 1.4%
Jardine Matheson leads gainers on the blue-chip index while OCBC falls the most
Singapore shares closed lower on Monday (Nov 2) as local banks experienced declines. The Straits Times Index (STI) dropped 1.4 percent or 72.91 points to reach 5,303.83. Jardine Matheson emerged as the top gainer on the blue-chip index, climbing 2.1 percent or US$1.21 to US$58.88. OCBC suffered the steepest loss among STI components, falling 3.3 percent or S$0.97 to S$28.32.
Other local banks also ended the day in the red, with DBS down 1.9 percent or S$1.42 to S$71.71 and UOB slipping 1.7 percent or S$0.71 to S$40.66. Within the iEdge Singapore Next 50 Index, CSE Global was the biggest winner, surging 4 percent or S$0.035 to S$0.91, while Sheng Siong faced the most significant decline, slipping 9.4 percent or S$0.25 to S$2.42.
Across the wider market, outperforming stocks outnumbered underperformers 276 to 310, with 935.9 million securities valued at S$2.4 billion exchanged. Addvalue Tech led trading activity, with 26.9 million shares changing hands, followed by DBS, which saw 11.1 million shares valued at S$793.6 million traded. Regional indices displayed varied performances, with Hong Kong's Hang Seng Index inching up 0.4 percent, Japan's Nikkei 225 slipping 0.3 percent, South Korea's Kospi gaining 2.2 percent, and the FTSE Bursa Malaysia KLCI advancing 0.2 percent.
Analysts Jefferies' Joanna Cheah and Ang Wei Han anticipate DBS to maintain a relatively stronger position due to its robust deposit base, while OCBC and UOB could face heightened pressure from deposit re-pricing. The analysts' September 2026 statistics highlight a constructive loan-growth outlook for the local banks, which they believe could counteract margin pressures.
Heading into Q3 results, the analysts recommend DBS for its earnings resilience and UOB, citing contained asset quality risks that may lead to an earnings recovery and valuation re-rating. OCBC remains on the analysts' "hold" recommendation, citing potential earnings headwinds due to weaker Great Eastern contributions and moderation in wealth fees following an exceptionally strong Q2.
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