S$7 billion wiped off OCBC value as shares slide 5.2% in heavy trade
[SINGAPORE] Shares of OCBC dropped as much as 5.2 per cent in intraday trading on Wednesday (Oct 7). As at 11.11 am, the counter was down 5.2 per cent or S$1.66 at S$30.54.
It was also the top traded stock by value, with over 12 million shares worth over S$374 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 remains cautious on banks as a sector. 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 also fell, with DBS down 1 per cent and UOB declining 1.5 per cent.
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 H1 2026,” Koh said.
