Over the past two weeks, we’ve lost count of how many people were asking about the share prices of two of our local banks.
We’ve been peppered with questions surrounding the seemingly strange share price reaction of DBS Group (SGX: D05) and United Overseas Bank Ltd (SGX: U11), or UOB.
DBS has reported a record-high net profit of S$8.2 billion for 2022 while declaring a S$0.50 special dividend.
The lender has also upped its quarterly dividend from S$0.36 to S$0.42.
UOB reported a similarly-sparkling set of results as its net profit hit S$4.6 million, with the bank bumping up its final dividend from S$0.60 to S$0.75.
With such good numbers being bandied around, you would reasonably expect the share prices of these two blue-chip banks to soar to new heights, right?
You couldn’t be more wrong.
The day after the results were released, DBS saw its share price promptly fall from S$36.03 to S$35.32, a drop of 2%....