Banks push STI up 1.4% to 4989.08, second line continued to see hectic activity

Date: May 18, 2026

• DBS’s surge to a new high above S$60 helped add 1.4% to STI
• Second line activity continued with Green Build, Concord NE, Top Glove, JEP and Creative among those that sprang into life
• US stocks took a hit on Friday after bond yields spiked up
• Genting Singapore’s 1Q profit down 55% to S$65.2m, shares take a beating
• Valuetronics warned of profit drop, shares take a beating
• SingPost’s 2H net profit down 81.5%, will keep and enhance SingPost Centre
• Wealth fees for the three banks will continue to power earnings: BT report

 

STI rose 1.4% thanks mainly to the banks, especially DBS and OCBC

DBS gained S$1.52 or 2.6% to close at a new all-time high of S$60.20 last week, thus helping the Straits Times Index rise about 68 points or 1.4% to 4,989.08.

Also contributing were OCBC and UOB – the former rose S$1.01 or 4.6% to S$22.93 whilst the latter gained S$0.74 or 2% at S$37.30.

Meanwhile, activity in the second line continued to be hectic, with several stocks posting large percentage gains.

For example on Monday, Green Build jumped 30%, Concord NE 25% and Top Glove 16.7%; on Thursday JEP shot up 28.4% and Creative 9.85%.

Wall Street pulled back on Friday as bond yields spiked up

The stock market rally took a hiatus on Friday, as a sharp Treasury selloff left investors wondering just how much higher bond yields can climb.

Underlying inflation pressures strengthened in April as the US Consumer Price Index, excluding food and energy, rose 0.4% month-over-month, accelerating from March’s 0.2% increase and surpassing economists’ expectations for a 0.3% gain, highlighting persistent core inflation pressures across the economy.

On Friday, the S&P 500 fell 1.2%, while the Dow Jones Industrial Average declined 537 points, or 1.1%, and the Nasdaq Composite lost 1.5%.

The Russell 2000, which tracks stocks with small market capitalizations, fell 2.4%, the index’s worst day in 2026.

The US Treasury market has been at a critical juncture recently–and on Friday, it tipped over. The yield on the 30-year Treasury note settled at 5.13% on Friday, its highest level since July 2007. The yield on the 10-year Treasury note, meanwhile, ended Friday at nearly 4.6%.

“If the 10-year Treasury returns to 5%, that could be a pivotal point when equity investors pare back allocations and downshift earnings forecasts,” Chris Maxey, chief market strategist at Wealthspire, told US newspaper Barron’s on Thursday.

The yield on the 10-year note hasn’t been at that level since Oct. 23, 2023, when it hit an intraday high of 5.005%, according to Dow Jones Market Data.

For the week, the blue-chip Dow lost 0.17% and the benchmark S&P added 0.13%, while the tech-heavy Nasdaq Composite dipped 0.08%

Genting Singapore’s 1Q profit down 55% to S$65.2m, shares take a beating

Genting Singapore, which operates Resorts World Sentosa (RWS), reported a 55% drop in net profit to S$65.2 million for its first quarter ended Mar 31 and a 3% fall in revenue to S$607.6m on the back of an 8% slide in gaming revenue to S$403.4m.

Meanwhile, non-gaming revenue rose 8% on the year to S$204.1 million supported by higher visitation to key attractions including Universal Studios Singapore and the Singapore Oceanarium at RWS.

Adjusted earnings before interest, taxes, depreciation and amortisation fell 24% to S$179 million from S$235.8 million in the previous corresponding period.

Genting’s shares took a beating after the Wednesday announcement, closing S$0.07 or 10.15% lower at S$0.62 on volume of 336.4m.

Valuetronics warned of profit drop, shares take a beating

Shares of mainboard-listed electronics manufacturer Valuetronics Holdings tanked on Wednesday after the company disclosed that it expects to report a “significant” drop in net profit for its 2026 financial year.

It cited on Tuesday non-cash impairments linked to Trio AI, a Hong Kong-based joint venture (JV) in which Valuetronics holds a 26.6% equity stake. Though listed in Singapore, Valuetronics is headquartered in Hong Kong with manufacturing operations in China.

Valuetronics’ shares fell as much as 20.8% to S$0.935 on Wednesday morning before paring its losses and closing the session at S$1.02, S$0.16 or 13.6% lower on volume of 14.1m.

The company expects to recognise provisions against the carrying amount of its investment cost, advances made to the venture and outstanding receivables.

Additionally, Valuetronics will take a hit on graphics processing units (GPUs) and ancillary hardware deployed to Trio AI under an equipment leasing arrangement, as well as undeployed assets held by the broader group.

SingPost’s 2H net profit down 81.5%, will keep and enhance SingPost Centre

Singpost reported an 81.5% drop in net profit for its second half ended Mar 31 to S$41.2m. Revenue for the six months also fell, by 18.2% to S$187.6 million.

The postal and logistics firm also announced that it has decided against divesting its flagship building, SingPost Centre (SPC) and instead will carry out enhancements to further milk the cash cow.

This marks a U-turn from a 2023/2024 decision, made by SingPost’s previous board, to divest the building in Paya Lebar where it is headquartered.

SPC, which was previously valued at S$1.1 billion, had been deemed by SingPost’s previous board as a non-core asset and earmarked for divestment.

However, the property has been SingPost’s top earner since it sold its Australian logistics business in March 2025, as the group struggles with a declining mail-delivery business and a highly competitive e-commerce logistics business.

SingPost is now eyeing a potential redevelopment of SPC, should height restrictions in the area be lifted when Paya Lebar Air Base is relocated from the 2030s.

SIA’s 2H net profit down 53.6% to S$945.5m due to absence of accounting gain

Singapore Airlines’ earnings for its second half ended March more than halved year on year to S$945.5 million from S$2 billion.

The national carrier attributed the 53.6% reduction in H2 net profit largely to the absence of a one-off, non-cash accounting gain of S$1.1 billion from the sale of the Vistara airline and recognised in the year-ago period.

However, SIA posted a record revenue of S$10.8 billion for H2 FY2026, up 8%. At the operating level, the group’s profit also hit a high of S$1.6 billion, jumping 72%.

Earnings per share for H2 FY2026 also more than halved to S$0.30, from S$0.685 previously whilst net asset value per share was S$5.48 as at Mar 31, versus S$5.27 in the year-ago period.

The board recommended a final ordinary dividend of S$0.22 per share for FY2026.

SIA had earlier paid an interim dividend of S$0.05 per share for H1 FY2026 ended September. It also proposed a special dividend package of S$0.10 per share annually over three financial years. In total, the ordinary and special dividend for FY2026 stood at S$0.37 a share.

For the full year, the airline group’s net profit declined by 57.4% to S$1.2 billion. This was also primarily due to the absence of the non-cash accounting gain from the completion of the Air India-Vistara merger.

The swing from a share of profits of associated companies in FY2025 to a loss in FY2026 was because SIA accounted for its share of Air India’s full-year losses that mounted to S$945.2 million. In contrast, the group considered only four months in the previous year.

Wealth fees for the three banks will continue to power earnings: BT report

According to a 13 May Business Times report, wealth management and other fee income are becoming increasingly important earnings contributors for Singapore banks, and analysts expect non-interest income to continue offsetting expected declines in net interest income amid a falling interest-rate environment.

This trend came through in the first-quarter results of the banks, which all beat analysts’ consensus estimates for the three months ended Mar 31, 2026.

The three lenders’ combined non-interest income rose to a record S$5.16 billion in Q1, from S$4 billion in the preceding quarter and S$4.78 billion a year earlier. This accounted for 39% of the banks’ total income.

The report quoted Rena Kwok, senior credit analyst at Bloomberg Intelligence as saying “The pivot to fee income-led growth to bolster profitability amid rate pressures stood out’’.

In the quarters ahead, “Singapore banks are likely to double down (on) their strategies to sustain wealth management fee momentum amid rate headwinds”, she added.

“Safe-haven inflows amid global uncertainties, driving new money for the lenders, is another lever.”

For DBS, efforts to grow its wealth management franchise are “bearing fruit”, said CGS International (CGSI) Securities Singapore analysts Tay Wee Kuang and Lim Siew Khee in an Apr 30 note.

DBS led the three banks in wealth fee income, with record fees of S$907 million, up from S$724 million the year before. The CGSI analysts upgraded the counter to “add” from “hold”, with a new target price of S$63.80.

Over at OCBC, wealth management fees climbed 34% to S$422 million. This helped to lift non-interest income by 23% to S$1.61 billion and offset a 5% decline in net interest income.

Tay and Lim of CGSI maintained “hold” on the counter, also keeping their target price of S$23.30 unchanged, in a May 8 report. RHB on May 11 kept its “buy” rating on OCBC with a target price of S$24.65, after raising its earnings forecasts for the lender until 2028, on expectations of higher non-interest income.

UOB’s profitability could improve only in the second half of FY2026, the CGSI analysts said in another report on May 8.

They cited support from higher wealth management fees from new product launches, as well as other measures to drive new-money inflows following its acquisition and integration of Citigroup’s consumer banking franchise.

They maintained “hold” on the stock, with a target price of S$38.70.

Also on May 8, RHB kept its “neutral” rating on UOB, with S$39.50 as the target price. The brokerage believes “its valuation is decent and fairly reflects asset-quality risks and the lower provision coverage level (versus) the sector”.