Fears over S'pore banks 'overdone'

STOCKS of Singapore banks have taken a beating this year with some observers attributing this to market fears of potential pitfalls over the hike in the lenders' exposure to China. This has prompted the question of whether investors have been overly concerned.

Despite an uptick yesterday - with DBS gaining 1.14 per cent at $15.91, OCBC 0.32 per cent at $9.35 and UOB 0.5 per cent at $20 - shares of the three lenders are still down year-to-date, with falls of 6 to 8 per cent.

In a sector research last Friday, Maybank-Kim Eng analyst Ng Wee Siang called the fears a "storm in a teacup".