The outperformance came despite general market expectations of further rate cuts, potentially impacting the bank’s net interest income (NII) and net interest margin (NIM). The US Federal Reserve announced a 50 basis point (bps) rate cut on Sept 18.
Shares in DBS came close to reaching the $40 mark on Sept 23. At around midday, the bank’s shares hit a record price of $39.70 before closing at $39.46. After reaching all-time highs, shares in the bank have been on a steady decline since. On Sept 26, DBS’s shares opened at $38.03, 0.89% lower than its last-closed price of $38.37.
On Sept 24, OCBC Investment Research (OIR) strategist Carmen Lee noted DBS’s strong price outperformance, as the bank gained some 30% year-to-date (ytd), far surpassing the benchmark Straits Times Index (STI) and other high dividend stocks.
