In its report dated Nov 25, the team notes that while market volatility may continue following the US presidential elections and shifting expectations on the US Federal Reserve (US Fed) funds rate path, Singapore bank stocks offer investors “solid defensive options” during this period.
The Singapore research team at RHB Bank Singapore has upgraded the Singapore banking sector to “overweight” from “neutral”, with United Overseas Bank (SGX:U11
) (UOB) and DBS Group Holdings as the sector’s top picks.
RHB maintains its “buy” calls on UOB and DBS, while remaining “neutral” on OCBC. RHB’s target prices for the three banks are $40.20 (UOB), $44.70 (DBS) and $16.80 (OCBC).
