DBS, OCBC drag STI into the red

DESPITE a rise in the Dow futures, the Straits Times Index (STI) drifted to a 5.85-point loss at 3,320.67 on Monday, weighed down mainly by falls in DBS Group and OCBC Bank. Turnover at 1.7 billion units worth S$1.06 billion was below last week's average of around S$1.3 billion and, excluding warrants, there were 171 rises versus 297 falls.

Brokers spoke of the banks, and by extension the index, encountering upward resistance after their strong run-ups this year. "Banks shot up on expectations of robust earnings and now that those expectations have been met, maybe it's time to sell," said a dealer.

DBS led the way down with a S$0.34 or 1.6 per cent drop to S$21.15 on volume of 7.5 million. Maybank Kim Eng in its report Patience is a Virtue described DBS's first-half earnings per share as being slightly below expectations.