MS-HSBC@EC2612A

Keeping an eye on the bank earnings, the US jobs report, and any updates on the Strait of Hormuz. This week could influence market sentiment across financials, tech, and energy, so volatility may create both risks and opportunities for investors.

Everyone is still in shock right now. Once bitten by a snake, ten years afraid of a rope.

Fed’s Schmid sees AI capex fuelling inflation. Provoking thought: if AI forces higher-for-longer rates, could the technology driving productivity today become the catalyst behind tomorrow’s valuation reset?

Michael Burry says the stock market is "near a major top, and we could see a drop similar to 1987." Do you agree?

My opinion : Most major markets are trading close to record highs now, except HK stock market. Future gains will have to come mainly from earnings growth and not from valuations that are getting more expensive now.

Invest carefully or look to gold or REITs as an alternative.😆

It has been a good response from the market since the lows last week. It held those lows and is making higher highs on the smaller timeframes. Encouraging indeed.

Really one of a kind company. But at current valuations, might be better off to wait for the unlocking of shares to come through first.

even with cash injection. the stock price still unable to hold or goes up. earning is still a question for both companies.

$OCBC Bank(O39.SG)

OCBC remains the value play among Singapore’s three local banks. While DBS commands the highest valuation due to its superior ROE and digital leadership, and UOB benefits from its ASEAN franchise, OCBC offers an attractive balance of growth, dividend yield and valuation. At around 1.6–1.7x book value, OCBC still trades at a discount to DBS despite delivering a healthy ROE above 13%. (Minichart⁠)

Is this the right entry point? For long-term income investors, the answer is likely yes. Although the share price has rallied strongly, OCBC continues to offer a compelling dividend yield, supported by a robust capital position and ongoing capital return programme. (Reuters⁠)

With NIMs facing pressure from lower interest rates, OCBC’s next growth engine will come from wealth management, insurance and regional expansion. Wealth management income has already reached record levels, while the acquisition of HSBC Indonesia’s retail and wealth business provides another avenue for growth. (Reuters⁠)

New CEO Tan Teck Long has started positively. While it is still early to assess his long-term impact, he has maintained strategic continuity, accelerated OCBC’s wealth ambitions and preserved shareholder-friendly capital returns. (Reuters⁠)

For investors seeking a combination of stable dividends, prudent management and exposure to Asia’s growing wealth segment, OCBC remains an attractive core holding.

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DBS expanding its wealth management footprint by 50% across 6 markets sounds ambitious. But HSBC Private Banking, UBS, and Julius Baer already have decades of UHNW client relationships in Asia. Is there enough room for DBS to genuinely win mandates, or is this expansion mostly optics?? 🙋

Day 25: As of May 2026, OCBC Bank has reported a strong start to the year, with Q1 2026 net profit rising by 5% to $1.97 billion, surpassing expectations driven by wealth management fees and record non-interest income. Under new leadership, the bank aims to double its wealth business by 2029, including acquiring HSBC Indonesia’s wealth business.

The US market is crazily bullish for tech stocks. The danger for those who have yet to enter is if they will be entering at a high point.

Up, up and away says the market. But I am happy staying defensive coz I prefer buying at a discount. Not certain if there will be a sale but its always good safety first!

It has been an awesome rally for tech supported by strong results and outlook. I still remain defensive despite the rally which I expected somewhat and hence decision to add on some AI names despite my defensive posture. But I am scaling out into strength and staying defensive. Stay safe!

I expect the US market to open and close relatively flat tonight ahead of tomorrow Non Farm Payroll (NFP) results. Investors likely to take a cautious pause.

As for OCBC’s quarterly earnings tomorrow, I anticipate weaker loan interest income, partially offset by contributions from its insurance business and other non-interest income streams. Let’s see how it turns out.😉

Based on today’s Business Times, the insurance arm of OCBC reported a slight 0.2% increase in net profit to S$346.3 million for the first quarter ended March 31, 2026, up from S$345.5 million a year ago.

With above news. the market should already have a fairly good idea of OCBC’s overall results for the quarter. Either flat or moderate results 🤭.

I believe the AI supercycle has already been fore ran and hence the market has been consistently demanding the exceedingly, overwhelming perfect beats to drive the euphoria; nitpicking and reading between the lines and inventing concerns when the FOMO fruits are roped for picking. The narrative for capex monetisation concern surface every now and then, and then the concerns on power shortage, etc. Any little bad news can knock the knights off their high horse at any moment. But the party must go on right?

HSBC reported weaker than expected profits. It is mainly due to an unexpected UK fraud-related charge and higher credit provisions linked to rising economic risks from the Middle East conflict, the Iran war.

As for Singapore banks like UOB and OCBC, I do not currently see any significant direct risk, given their relatively limited exposure to the UK private credit market and the Middle East compared to HSBC.😁