DBS and OCBC Hit Fresh Highs as Singapore Banks Rally, June 03

Shares of DBS and OCBC hit fresh highs on June 2 as Singapore’s banking sector rallied. DBS rose 2.9% to S$64.67 while OCBC gained 2.9% to S$24.08. The gains followed recent announcements of wealth centre expansion and an analyst upgrade. RHB raised its rating on all three local banks to overweight, citing strong fee income and evolving rate expectations as tailwinds for the sector.

Banks Announce Wealth Expansion Plans

DBS unveiled plans to launch 18 new and 36 upgraded Asia-Pacific wealth centres by end-2027. OCBC’s private bank, Bank of Singapore, intends to sharpen its focus on ultra-high-net-worth clients. These announcements signal the banks’ confidence in growing their wealth management business, a high-margin revenue stream that attracts affluent customers across the region.

Analyst Upgrade Drives Market Sentiment

On May 28, RHB upgraded its rating on DBS, OCBC, and UOB to overweight from neutral. Analysts cited evolving rate expectations and resilient fee-income generation as fuelling renewed investor interest. The upgrade reflects confidence that Singapore banks will benefit from a shift in interest rate trajectory and sustained demand for wealth services. With Meyka rating DBS a B+ and OCBC a B+, both stocks have upside targets of S$68.47 and S$22.42 respectively over 12 months.

Broader Market Rally Supports Gains

The STI gained 1.2% or 59.56 points to finish at 5,097.42 on June 2. DBS led gainers on the index, while OCBC also hit a fresh high. UOB advanced 2.1% to S$38.40. The rally mirrored gains abroad, as Wall Street stocks closed higher on June 1 amid ongoing US-Iran peace negotiations. The Dow Jones rose 0.1% to 51,078.88, the S&P 500 gained 0.3% to 7,599.96, and the Nasdaq Composite advanced 0.4% to 27,086.81.

Technical Signals Show Strong Momentum

DBS shows overbought conditions with RSI at 84.79 and CCI at 174.46, signalling strong upward momentum. OCBC’s RSI stands at 72.47, also in overbought territory. Both stocks display strong trends with ADX readings above 37, indicating sustained directional movement. Investors should monitor for potential profit-taking as both stocks trade near year highs.

Final Thoughts

DBS and OCBC’s fresh highs reflect renewed confidence in Singapore’s banking sector driven by wealth expansion plans and an analyst upgrade to overweight. With both stocks rated B+ by Meyka and showing strong technical momentum, the data supports continued investor interest in the sector.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.