Amid this, the timeline for moderating net interest margin (NIM) concerns for banks UOB (SGX:U11
) and OCBC (SGX:O39) may be pushed back, Yeo notes. Both stocks should also be underpinned by trading interest heading closer to their ex-dividend dates in April or May, he adds.
Against the backdrop of slowing global growth and “higher-for-longer” rates, investors can seek shelter in stocks with decent earnings or dividend cushions or both, says DBS Group Research analyst Yeo Kee Yan.
As at March 9, the US Federal Funds futures are pricing in a 69% chance for 50 basis points hike at the March Federal Open Market Committee meeting as well as a terminal rate of 5.75% by June or July this year. This is higher than DBS’s current economist forecasts for 5.25% terminal rate, says Yeo.
