1. Is there any reason not to buy DBS? Will it hit $60 this year?
Upside case: Lower interest rates could spur loan growth, wealth management flows, and trading activity. DBS also benefits from strong capital ratios and consistent dividend payouts.
Risks: Falling interest rates also mean net interest margins (NIMs will compress). Valuation has already priced in optimism, so chasing at highs carries risk of pullback. Regulatory shifts or regional slowdown (esp. China exposure) could dampen sentiment.
Target: $60 is plausible if momentum continues, but the move may be gradual unless earnings guidance strongly exceeds expectations.
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2. Are you bullish on STI hitting 5,000?
JPMorgan’s call rests on two catalysts:
1. Falling global rates → stronger fund inflows into Asia yield plays.
2. SG’s S$5B market development programme → could boost liquidity, ETFs, and institutional participation.
Risks: STI is bank-heavy; if Fed cuts slower than expected or China drags further, momentum could stall.
Still, 5,000 is achievable if both DBS and UOB/OCBC sustain highs alongside property/REIT recovery.
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3. Sea or DBS: Your choice would be?
Sea Ltd: Growth stock, highly volatile, reliant on e-commerce/gaming rebound. Execution risk remains, especially in Shopee’s profitability and Garena’s slowing revenue.
DBS: Dividend fortress, stable earnings base, less volatile. With rate cuts, banks won’t enjoy record NIMs, but wealth/fees can cushion.
👉 If you prefer stability + dividends → DBS.
👉 If you prefer higher risk/reward growth → Sea. Personally, DBS looks more attractive given current macro conditions.
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4. Who may follow the new high trend?
Other local banks: UOB and OCBC often move in tandem with DBS.
SGX-listed REITs: If rates drop, large-cap REITs like CapitaLand Integrated Commercial Trust (CICT) or Mapletree names could rebound.
Singapore Exchange (SGX) itself: Higher trading activity could drive earnings.
Telcos (Singtel): Possible upside if regional operations recover and 5G monetisation improves.
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- DaveLewis·09-12I agree, DBS looks solid for stability and dividends, especially in this economic climate.1Report