DBS shares rose 3 percent on Wednesday morning following an upgrade by OCBC Investment Research and a Moody's report about Singapore's banks.
DBS shares jumped 3 percent to S$25.55 on Wednesday morning before paring some gains in the afternoon. The lender's share price dropped to a one-month low of S$24.06 on 3rd June as trade tensions between the U.S. and China, coupled with the decline in interest rates have dragged down DBS' share price in recent weeks, OCBC Investment Research noted.
Local bank shares have trended upwards following a Moody's report on Monday, which said that Singapore banks will be able to defend their market share against fintech competitors, despite the growing threats banks face from these companies.
Abundant Financial Resources
The report said it was partly because the banks have abundant financial resources to invest in technology, whereas startups are facing increasing competition for funding.
Based on Tuesday's closing price of S$24.80, DBS' dividend yield is 4.8 percent. At the current price, it is an opportune time to accumulate DBS shares, OCBC Research noted. Its fair value for DBS remains unchanged at S$29.18.
