STI climbs back above 3,500 points

IN a day where Hong Kong and Taiwan rebounded, Singapore's benchmark Straits Times Index (STI) easily regained its 3,500-point perch, less than three weeks after dropping below that level in this year's correction.

By the close of trading on Wednesday, the STI was trading at 3,516.23, up 39.7 points or 1.1 per cent. Banks, property, industrial and manufacturing stocks all contributed to the gains, even though European stocks opened lower.

Summing up the upbeat sentiment, UOB Kay Hian Research said in a Feb 19 note that banks have guided for high single-digit loan growth, even while net interest margins are expected to go up. It has a target price of S$14.90 on OCBC, and S$30.40 on DBS.

"OCBC is our preferred 'buy' due to the initial public offering of Great Eastern (Malaysia) in H2 2018. However, DBS could provide more short-term momentum in the run-up to the next Fed meeting on March 20-21," …