Lately, Singapore banks have been quietly slipping. Shares of DBS, OCBC and UOB were down 1-2%. Not a huge crash.
But could this dip be a sign of more worrying things ahead? What’s driving Singapore banks lower? And is it a good time to buy now, or sell?
Let’s dive in.
Singapore banks dominate the STI Index
Just to put this out there – history is filled with investors believing in all the crazy things. In other words, the stock market behaves like a herd. If we aren’t careful, we can behave like one too.
Right here and now, Singapore banks have been on a bull run until lately. These bad boys now account for over 50% of the STI Index.
This was much higher than 34% of the index in 2024. And this is much higher than other stock market indices. For instance, US banks account for 13% of the S&P 500 Index.
The question I’ll ask is not whether DBS, OCBC...