My 3 Favourite STI Component Holdings Are DBS, OCBC and UOB

🌟🌟🌟The Singapore Stock Market has been on a tear recently with many of our local stocks at their highest level since 2007.  This is due to the Feds cutting interest rate by 50 basis points.  Much of the advance was driven by our 3 major Singapore Banks and SReits which are getting a much needed boost from lower rates. 

The market monitor in my Tiger App has been working overtime in keeping me posted as many of my Singapore stocks are hitting 52 weeks high.   It is such an exciting time to see that my patience and time in the Singapore markets have now come to fruition. 

My Favourite STI Components are simply the 3 Singapore Bank Stocks.  All 3 banks have been hitting 52 weeks high recently.   They are also the Top 3 holdings in $STI ETF(ES3.SI)$  

$DBS Group Holdings(D05.SI)$  takes up 22% weightage with $ocbc bank(O39.SI)$  at 15% and $UOB(U11.SI)$  at 11%.  Together our 3 local banks take up 48.7% weightage of the STI ETF holdings.   That is almost half of the STI ETF.  

I have been dollar cost averaging into all 3 banks ever since I started my investing journey with Tiger Brokers 4 years ago.    

DBS is the largest bank in Singapore with a  market capitalisation of SGD 109.58 billion.  Its share price is up 1.7% this week, hitting its 52 week high at SGD 38.55.  This premier bank pays a dividend yield of 5.21%.  DBS is also the winner of multiple banking awards through the years, including the "World's Best Bank" by Euromoney, as well as by Global Finance for the 5th year running.  It is really an incredible record considering that Singapore is such a small country. 

OCBC is the 2nd largest bank in Singapore and the oldest.  OCBC was formed in 1932 from the merger of 3 local banks, the oldest of which was founded in 1912.  OCBC also owns $Great Eastern(G07.SI)$ , the largest insurance group in Singapore and Malaysia. 

OCBC's share price has also reached its 52 week high recently to SGD 15.50.  It has a great dividend yield of 5.56%.  OCBC reported Net Profit of SGD 3.93 billion for the first half of 2024, 9% higher compared to SGD 3.59 billion from previous year.  It is on track to meet its 2024 targets. 

UOB is Singapore's 3rd largest bank.  Its  share price has reached a 52 week high this week at SGD 32.73.  UOB is very active in the ASEAN region especially after its acquisition of Citibank's Consumer business in Malaysia, Thailand, Indonesia and Vietnam for SGD 5 billion.   This is UOB's biggest acquisition in 20 years and will certainly consolidate its  position in this fast growing region. 

Singapore has established itself as one of the leading private banking and wealth management  centres in Asia and globally. 

DBS has reported a 37% surge in fees from wwealth management amounting to SGD 518 million in its latest Q2 Earnings.  OCBC and UOB are also experiencing similar growth.  All 3 Singapore banks are experiencing increased client fund inflows and heightened trading activity in financial markets, thereby generating more fees. 

So even though the banks may see narrower margins due to lower interest rates, some of it may be offset by their robust growth outlook. 

The Singapore Government is also looking at ways to strengthen the stock markets by setting up a task force.  This would certainly boost investors 'optimism to invest in our Singapore market.

The stage is set for a more vibrant and exciting Singapore stock market and our Singapore banks will certainly benefit. 

Singapore is a safe haven amidst volatility in other markets and it is time for our Singapore stocks especially the 3 major Singapore banks to outperform and live up to their huge upside potential. 

Go Long Go Strong Go DBS, OCBC and UOB! 🇸🇬🇸🇬🇸🇬🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰

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