Singapore banks have been on a roll the past week.
The trio of lenders saw their share prices surge higher to hit new all-time highs, helping to push the bellwether Straits Times Index (SGX: ^STI) to a one-year high of 3,439.88.
As of 4 July, DBS Group (SGX: D05) is the best performer of the three with a 25.6% year-to-date (YTD) gain after hitting its intra-day all-time high of S$38.17.
OCBC Ltd (SGX: O39) came in second with a 17.3% YTD gain after hitting an all-time high of S$15.15.
United Overseas Bank (SGX: U11), or UOB, logged a 14.3% YTD gain and set a new all-time high of S$32.64.
Investors may be curious to know if the banks can continue their stellar performance.
Are there any catalysts or business developments that can take these lenders to another level?
An uncertain interest rate policy
It’s a well-documented fact that banks thrive in a higher interest-rate environment.
As interest rates head upward,...