Banks drive Singapore stocks to three-month low as brokerages flag earnings risks
EWS•Singapore stocks fell more than 3% to their lowest in nearly three months, with DBS, OCBC and UOB down more than 4% as brokerages cited risks to bank earnings and funding costs.
1. Singapore shares slide
The FTSE Straits Times Index fell as much as 3.2%, its lowest level since mid-July, as surging bond yields raised concerns about bank earnings and funding costs. DBS fell 5.2%, OCBC dropped 4.8% and UOB lost 5.3%; the three banks account for more than a quarter of the index.
2. Brokerages flag risks
JPMorgan recommended trimming exposure to DBS and OCBC, citing higher funding costs, rising long-dated bond yields and the normalization of exceptional first-half wealth-related income. Citi downgraded OCBC to sell, citing lower earnings expectations and downside risks to forecasts ahead of third-quarter results.
3. Regional markets fall
South Korea’s KOSPI fell as much as 2.3%, while Taiwan’s market slipped 0.9%. Samsung Electronics projected quarterly profit above 100 trillion won, estimating a nearly nine-fold year-over-year increase as demand for AI chips boosted memory sales; its shares fell more than 2%.
