All-time highs for the banks meant all-time high for the STI at 5,469.22

Date: July 13, 2026

• Gains of 5.5-10.3% for the banks drove STI 4.3% to 5,469.22
• Wall St was mainly firm despite rising bond yields from renewed US-Iran fighting
• Analysts still positive on local banks
• Foundation Healthcare ended its debut 7.9% below IPO despite 3.8 subscription
• S-Reits poised for rerating despite hawkish Fed backdrop: DBS
• Singapore retail investors more bullish on AI than global peers: eToro survey

 

It’s still mainly about the banks as the STI surged past 5,300 and 5,400

Despite renewed hostilities between the US and Iran, the three banks last week continued to drive the Straits Times Index to new highs with gains of 5.5-10.3%.

As a result, the index set five consecutive highs, smashing through the 5,300 and 5,400 levels, gaining 225 points or 4.3% at a record closing high of 5,469.29.

Laggard UOB set the pace, surging S$4.14 or 10.3% over the week to an all-time high of S$44.38. OCBC came next, with a gain of S$2.12 or 8.4% at S$27.43 and DBS followed with a rise of S$3.69 or 5.5% at S$70.45.

 

Over in the US, stocks were mainly firm despite rising bond yields

Treasury yields rose amid renewed hostilities in the Middle East.

President Trump says the ceasefire with Iran is over, driving oil prices up and reviving inflation concerns. Fed minutes provide little certainty about the future of interest rates, with officials expressing mixed views.

Despite rising 150 points, or 0.3%, during Friday’s session, the Dow ended the week lower, bringing an end to the index’s four-week winning streak.

For the week, the tech-heavy Nasdaq Composite popped 1.74%, while the S&P 500 climbed 1.23%, and the blue-chip Dow Jones Industrial Average slipped 0.50%.

On Friday, the U.S. 2-Year Treasury yield rose 3 basis points to 4.20%, while the U.S. 10-Year Treasury yield advanced 2 basis points to 4.56%.

 

Singapore bank stocks to remain firm: analysts

Citi analyst Tan Yong Hong said he expects about 10% earnings growth for DBS in the 2027 and 2028 financial years on loan-growth recovery. This lending boost will increase the bank’s profit margins on loans and bring in higher everyday service fees, he said.

According to the note, the turnaround is heavily driven by structural shifts in system liquidity. During the recent US rate cut cycle, the local one-month Singapore Overnight Rate Average (Sora) benchmark interest rate plunged 2.7 percentage points peak-to-trough to around 1% by mid-2026.

This drop significantly outpaced the 1.75% point decline in US rates due to flush liquidity in the Singapore system.

However, banking dynamics are reversing. Banking system data from May 2026 showed that loan growth reached 8.7% year on year, outstripping deposit growth of 6.8%. This pushed the loan-to-deposit ratio back up to 68.7% while the current account savings account ratio slid 50 basis points to 54%.

Citi noted that Sora rates will find strong support as long as consumer and corporate lending continue to soak up excess system liquidity. Consequently, Citi upgraded its net interest margin forecasts by up to five basis points, targeting a recovery closer to 2019 levels.

The brokerage also lifted its sector loan-growth forecast to between 6 and 7%, up from 5% previously, which is expected to boost non-wealth fees such as trade and loan-related services.

Citi highlighted DBS’ strong dividend per share visibility and its position as a premier Asia wealth proxy as the key reasons for its preference over the other Singapore banks.

Driven by net interest income upgrades, Citi’s earnings estimates for DBS stand 5 to 8% ahead of consensus expectations.

OCBC is still favoured, though, with Citi positioning the stock for growth and a return-on-equity (ROE) catch-up with DBS. The brokerage’s estimates for OCBC are 2 to 5% ahead of the street; it notes that the current price-to-book valuation gap presents a buying opportunity if the ROE gap narrows.

Meanwhile, UOB remains a “neutral” hold. Investors are continuing to monitor its wealth and loan-growth trajectories, which currently lag those of its peers.

 

Foundation Healthcare ended its debut 7.9% below IPO despite 3.8 subscription

Foundation Healthcare’s initial public offering (IPO) of shares priced at S$0.76 each was 3.8 times subscribed; however, the stock ended its first trading day at S$0.70 on Wednesday 7.9% below the IPO price. It finished the week at S$0.735.

The international offering was 3.5 times subscribed, receiving interest for around 531.7 million shares for the 153.4 million shares available.

The Singapore public offering was 9.4 times subscribed, with 3,805 valid applications for 87 million shares, amounting to S$66.1 million; 9.2 million shares were available for subscription.

Shareholders include long-term institutional investors, insurers and fund managers part of Singapore’s Equity Market Development Programme, said Liaw Yit Ming, executive director and chief executive of Foundation Healthcare.

Together with cornerstone commitments from 10 cornerstone investors, the IPO amounted to around S$242 million, assuming the over-allotment option is not exercised.

 

S-Reits poised for rerating despite hawkish Fed backdrop: DBS

Real estate investment trusts (REITs) in Singapore, Hong Kong and Thailand have shown resilience despite a more hawkish market backdrop, DBS Group Research said.

The negatives have already been priced in, although the impact is differentiated among the three markets, the research house noted in a Monday report.

Investors across the region have sought shelter in defensive REITs amid global economic uncertainty, keeping valuations “attractive”. This should “cushion near-term volatility in the interest rate trajectory”, with yields ranging from 4.9 to 7.6% helping to drive inflows back into the sector, DBS said.

That volatility stems from the US Federal Reserve, which left its rate unchanged at 3.5 to 3.75% in June. At the same time, it delivered a “notably more hawkish message” by reiterating its commitment to restoring price stability, offering less forward guidance and removing its previous easing bias, observed DBS’ analysts.

Against this backdrop, DBS expects the upcoming earnings season to serve as a catalyst for Singapore-listed REIT (S-REITs), with results likely to drive a further rerating in the sector’s valuations despite its lacklustre performance this year.

DBS’ analysts noted that when global interest rates and bond yields rise, income-seeking investors rotate out of REITs and into safer government bonds, driving REIT unit prices down.

Most Asian bond yields have indeed risen and are now about 40 to 50 basis points off year-lows. Singapore, however, is an exception, with its 10-year yield anchored around the 2.04% level.

Because Singapore’s risk-free rate did not spike, S-REITs remained relatively stable, rising 0.4% month-on-month. Thai REITs rose 3.1%, while Hong Kong REITs fell 5.4%.

“We remain comfortable that S-REITs remain relatively well-positioned given easing domestic funding costs, resilient occupancies and healthy rental reversions,” DBS stated.

It added that capital recycling and asset optimisation continue to support earnings. S-REITs currently offer yields of 6.2%, compared to 7.8% for Hong Kong and a range of 4.9 to 7.6% for Thailand.

Singapore retail investors more bullish on AI than global peers: eToro survey

A new survey by trading platform eToro found that more than half of Singapore retail investor respondents expect AI stock prices to rise in 2026, compared with 44 per cent globally.

However, they are divided on which AI market segment will deliver the strongest returns over the next five years.

The survey revealed that 40% favour semiconductor and chipmaker firms, followed by large technology platforms integrating AI (39%) and specialised AI-first companies (35%).

The platform’s Q2 2026 Retail Investor Beat survey, published on Tuesday polled 11,000 retail investors in 13 countries including Singapore, the UK, US and Australia. Of these, 1,000 respondents were from Singapore.

Conducted in May this year, the survey defined retail investors as self-directed or advised investors who held at least one investment product, including shares, bonds and funds.

According to eToro, the typical Singaporean retail investor in 2026 has more than three years of investment experience, with S$50,000 to S$200,000 in investments and a portfolio anchored in cash, domestic equities and fixed income, with significant exposure to financial services and technology.