Much also depends on the performance of the other two banks, United Overseas Bank (SGX:U11
) (UOB) and Oversea-Chinese Banking Corp (OCBC). Both rebounded as a result of DBS’s 1QFY2024 performance, raising prospects that these two banks could also perform better than expectations.
The much better-than-expected 1QFY2024 net profit — with no one-off items such as writebacks — reported by DBS Group Holdings spurred its share price and market capitalisation to unseen levels. At $100 billion, DBS is far and away, the largest local company and arguably, Asia’s largest bank ex-China, ex-Japan and ex-HSBC Holdings. Its performance has underpinned the performance of the Straits Times Index (STI).
A listed proxy of the STI is the STI ETF which broke out of a twice-tested resistance at its third attempt at $3.334. The breakout indicates a target of $3.54, a new three-year high. Prices were last at or above this level back in May 2018.
