Share prices of Singapore banks dip following expectations of Fed rate hikes ending
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Tay Peck Gek
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THE local banking trio ended the trading day in the red after the US Federal Reserve hiked the federal funds rate by 25 basis points on Wednesday – suggesting the United States central bank is close to the end of its rate hiking cycle.
DBS led the fall with a 2 per cent decline to S$35.08, OCBC slid 0.8 per cent to S$12.88 and UOB slipped 0.3 per cent to S$29.63 on Thursday (Feb 2). The trio were among the six losers on the 30-stock Straits Times Index (STI), with DBS being the top loser.
The banks have been beneficiaries of policy rate hikes by the Fed, with their bread and butter – net interest margins (NIMs) – rising in tandem with higher borrowing costs.
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