Citi downgrades Singapore banks to 'sell'; trio down 4%

CITI Research on Monday downgraded the Singapore banks to "sell", seeing further material downside on the trio's share prices as the bank-brokerage expects short-term Fed interest rates to hit and stay at zero for much of the next nine months.

Singapore banks also may not defend their dividend levels, Citi added, as it slashed target prices again from its lowered estimates on March 4. This is one of the rare "sell" calls on the Singapore banks, checks on Bloomberg showed.

Shares of Singapore banks tumbled at market open on Monday, and are down roughly at least 4 per cent. As at 9.45am, shares of DBS were down at S$21.99, shares of UOB fell to S$22.26, while shares of OCBC fell to S$9.81.