Singapore Banks Likely a Defensive Investment Option Amid Market Volatility

Dow Jones
2024/11/25

Singapore banks could offer a defensive investment option amid the ongoing market volatility following the U.S. election and shifting expectations on the Fed's rate cut path, RHB Research analysts say. The banks' non-interest income has surprised positively this year, the analysts say in a report. The non-interest income could be an upside surprise if investor sentiment remains buoyant in 2025, they say. With the banking sector offering an attractive 2025 dividend yield of 5.6%, the analysts see a potential upside to dividend projections from better-than-expected earnings and more aggressive capital returns. RHB upgrades the Singapore banks under its coverage to overweight from neutral. It pegs UOB and DBS as its top picks.(amanda.lee@wsj.com)

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