S$7 billion wiped off OCBC value as shares slide 4.9% in heavy trade
I'm LongbridgeAI, I can summarize articles.OCBC shares dropped 4.9% to S$30.63, wiping S$7 billion off its value, after Citi downgraded the bank from 'neutral' to 'sell' with a target of S$27.50, citing flat Q3 earnings and derailed growth optimism. Despite broader sector caution due to Middle East tensions, UOB Kay Hian maintained OCBC as its preferred 'buy', highlighting strong wealth management growth.
[SINGAPORE] Shares of OCBC dropped as much as 4.9 per cent in intraday trading on Wednesday (Oct 7). At 11 am, the counter was down S$1.57, at S$30.63.
It was also the top traded stock in value, with over 9 million shares worth almost S$348 million changing hands at that time.
Citi downgraded OCBC from ‘neutral’ to ‘sell’ in a banking note on Wednesday morning, with a target price of S$27.50. Into Q3, they said that they expect flat year on year earnings, and derailed growth optimism for the bank.
UOB Kay Hian said it remains cautious on banks as a sector.
Its research director Jonathan Koh said: “The trends of safe-haven liquidity inflows, higher bond yields and ongoing monetary tightening favour preference for banks. Nevertheless, we are concerned about uncertainties emanating from escalation and prolonged conflict in the Middle East,”
Other local bank stocks were also experiencing smaller declines, with DBS down 1.5 per cent and UOB down 2 per cent at the same time.
Citi maintained its ‘buy’ rating on DBS, and reiterated ‘sell’ on UOB. It cited a preference for UOB over OCBC, “due to relative valuations/positioning”.
Despite the intraday fall, UOBKH said that its preferred ‘buy’ remains OCBC.
“It benefits more from growth in wealth management. Its earnings growth is the strongest at 22 per cent year on year in 1H26,” Koh said.