Key Indices
Top Stories
Sector Update | Banking
- We upgrade the banking sector to OVERWEIGHT as rising SORA, healthy lending demand and wealth inflows will support earnings growth. Our preferred pick is DBS (BUY/Target: S$84.70) due to its wealth management leadership and strong deposit franchise. We lowered our target price for OCBC (BUY/Target: S$33.00) as its regional growth strategy is tempered by near-term uncertainties in Indonesia.
Company Results | Frasers Logistics & Commercial Trust (FLT SP/HOLD/S$0.925/Target: S$0.98)
- FLT reported 2HFY26 DPU of 2.95 S cents, flat yoy due to lower capital distributions from past divestment gains. NPI grew 9.6% yoy, supported by rental uplift for logistics properties, stronger AUD and EUR exchange rates, higher occupancy at ATP, and recent logistics acquisitions in Europe. Downgrade to HOLD due to limited upside with target price at S$0.98.
Company Results | Oversea-Chinese Banking Corp (OCBC SP/BUY/S$27.73/Target: S$33.00)
- OCBC reported a 3Q26 net profit of S$2,042m, up 3% yoy but down 8% qoq, as weaker Great Eastern investment returns tempered record banking profits. Strong loan growth supported NII, while fees remained near record levels and wealth AUM reached S$358b. Maintain BUY with a lower target price of S$33.00.
Company Results | Venture Corporation (VMS SP/BUY/S$14.29/Target: S$18.30)
- VMS’ 3Q26 revenue and net profit grew to S$790.4m (+26.0% yoy) and S$67.8m (+21.9% yoy) respectively. Portfolio B's production ramp-ups and market share gains drove growth, while a recovery in VMS’ life science segment supported Portfolio A. 9M26 revenue and earnings reached 80.4% and 76.6% of our full-year forecasts respectively. Maintain BUY with a target price of S$18.30, pegged to 20.2x 2027F PE.
Market Spotlight
- US stocks were higher on Monday. All indices rose as industrials, consumer discretionary and information technology sectors gained. There were more advancers than decliners on both the NYSE and NASDAQ.
- The FSSTI plummeted 117.08 points to 5,179.17, on the back of weakness in DBS, Seatrium and OCBC Bank. Both mid- and small-cap indices fell, with a broad market decline on S$3.24b turnover.
Technical Analysis
Hongkong Land (HKL SP)
Trading Sell Range: US$8.29-8.30
Propnex (PROP SP)
Trading Sell Range: S$1.65-1.66
Top Stories
Sector Update | Banking
- We upgrade the banking sector to OVERWEIGHT as rising SORA, healthy lending demand and wealth inflows will support earnings growth. Our preferred pick is DBS (BUY/Target: S$84.70) due to its wealth management leadership and strong deposit franchise. We lowered our target price for OCBC (BUY/Target: S$33.00) as its regional growth strategy is tempered by near-term uncertainties in Indonesia.
Company Results | Frasers Logistics & Commercial Trust (FLT SP/HOLD/S$0.925/Target: S$0.98)
- FLT reported 2HFY26 DPU of 2.95 S cents, flat yoy due to lower capital distributions from past divestment gains. NPI grew 9.6% yoy, supported by rental uplift for logistics properties, stronger AUD and EUR exchange rates, higher occupancy at ATP, and recent logistics acquisitions in Europe. Downgrade to HOLD due to limited upside with target price at S$0.98.
Company Results | Oversea-Chinese Banking Corp (OCBC SP/BUY/S$27.73/Target: S$33.00)
- OCBC reported a 3Q26 net profit of S$2,042m, up 3% yoy but down 8% qoq, as weaker Great Eastern investment returns tempered record banking profits. Strong loan growth supported NII, while fees remained near record levels and wealth AUM reached S$358b. Maintain BUY with a lower target price of S$33.00.
Company Results | Venture Corporation (VMS SP/BUY/S$14.29/Target: S$18.30)
- VMS’ 3Q26 revenue and net profit grew to S$790.4m (+26.0% yoy) and S$67.8m (+21.9% yoy) respectively. Portfolio B's production ramp-ups and market share gains drove growth, while a recovery in VMS’ life science segment supported Portfolio A. 9M26 revenue and earnings reached 80.4% and 76.6% of our full-year forecasts respectively. Maintain BUY with a target price of S$18.30, pegged to 20.2x 2027F PE.
Market Spotlight
- US stocks were higher on Monday. All indices rose as industrials, consumer discretionary and information technology sectors gained. There were more advancers than decliners on both the NYSE and NASDAQ.
- The FSSTI plummeted 117.08 points to 5,179.17, on the back of weakness in DBS, Seatrium and OCBC Bank. Both mid- and small-cap indices fell, with a broad market decline on S$3.24b turnover.
Technical Analysis
Hongkong Land (HKL SP)
Trading Sell Range: US$8.29-8.30
Propnex (PROP SP)
Trading Sell Range: S$1.65-1.66
Key Indices
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
