Singapore shares rise, with DBS driving gains; STI up 0.4%

SINGAPORE stocks closed higher on Monday (Feb 10) as investors cheered another round of record-breaking earnings reported by DBS, the largest local bank.

The Straits Times Index (STI) was up 0.4 per cent or 13.71 points at 3,875.13. Across the broader market, gainers outnumbered losers 293 to 269, after 1.3 billion securities worth S$1.4 billion changed hands. 

On the STI, Venture Corporation was the top gainer, rising 1.9 per cent or S$0.24 to S$12.80.

It was followed by DBS , which climbed 1.6 per cent or S$0.70 to S$45.38 on a cum dividend basis. The lender registered record-breaking full-year earnings of S$11.29 billion, with its fourth-quarter net profit up 11 per cent at S$2.52 billion.

After the news, OCBC Investment Research raised its fair-value estimate of the stock to S$50, from S$43.60 previously.

“The external environment remains challenging with more tariffs and likely policy changes at the major economies. However, we believe that Asia is likely to be more resilient compared to other regions,” the research team said in a note on Monday.

“With the 6.7 per cent dividend yield, we believe DBS remains attractive for high-yield-seeking investors.”

DBS’ strong earnings also buoyed investor confidence in the two other local banks. UOB ended 1 per cent or S$0.39 higher at S$37.77. It will release its full-year results on Feb 19.

OCBC , which will report its earnings on Feb 26, closed up 0.3 per cent or S$0.06 at S$17.39.

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Meanwhile, Hongkong Land was the biggest loser on the STI. It fell 3.7 per cent or US$0.16 to US$4.20.

Elsewhere in the region, major indices closed the day mostly higher. Japan’s Nikkei 225 edged up 0.04 per cent, Hong Kong’s Hang Seng advanced 1.8 per cent, while South Korea’s Kospi dipped 0.03 per cent.