Record Gains for Singapore’s Financial Sector
The Straits Times Index (STI) reached a new milestone on Thursday, July 9, 2026, climbing to 5,424.02 points. The rally was fueled by a significant influx of institutional capital into Singapore’s three major lenders—DBS, OCBC, and UOB—as investors position themselves ahead of the upcoming corporate earnings season in August.
DBS shares marked a significant psychological breakthrough, crossing the S$70 threshold for the first time in history. The stock hit an intraday high of S$70.04 shortly after the market opened. Fellow banking giants also saw record performance: OCBC shares rose by 2.8% to reach S$27.54, while UOB climbed to S$43.87.
Institutional Inflows and Dividend Strategy
Market analysts attribute the momentum to a strategic shift in institutional portfolios. According to data from the Singapore Exchange, financial services have been a primary target for capital, recording S$683 million in net inflows. UOB, in particular, has seen strong support, bolstered by its ongoing S$2 billion share buyback program initiated in 2025, which has tightened share supply and boosted investor confidence.
The urgency to buy in is largely driven by the pursuit of first-half dividend payouts. With the banking trio historically offering robust yields, investors are locking in positions before the ex-dividend dates associated with the second-quarter results expected in early August. This trend represents a sharp reversal from earlier in the year, effectively offsetting more than 40% of the cumulative net outflows observed during the previous five months.