DBS breaks new barrier at S$52.75 as STI soars to new high of 4,346.68 points
JPMorgan has bullish STI target of up to 5,000, cites declining interest rates and Republic’s S$5 billion market development programme
[SINGAPORE] DBS shares hit an all-time high on Wednesday (Sep 10), helping to boost the Straits Times Index (STI) to a new record as investors continued to bet on Singapore’s efforts to revive the local market.
Shares of the bank soared nearly 3.7 per cent from its previous close, reaching S$52.75 as at 11.35 am. The STI rose an impressive 1.7 per cent or almost 50 points into new territory at 4,346.68 points.
DBS closed at S$50.88 the previous day, while the STI stood at 4,297.57 points. The index has climbed 14.7 per cent in the year to date, while DBS is up nearly 20 per cent year to date.
DBS posted a second quarter year-on-year net profit rise of 1 per cent to S$2.82 billion, beating the S$2.79 billion consensus forecast in a Bloomberg survey of six analysts.
The Monetary Authority of Singapore in July allocated S$1.1 billion to three asset managers to invest in the Singapore stock market, aimed at deepening market liquidity and restoring investor confidence. The move is part of a S$5 billion equity market development programme (EQDP) to further enhance the local bourse.
JPMorgan analysts in July also raised their target on the STI, with a higher base and bull target of 4,500 and 5,000, respectively. This was due to interest rate declines, positive tariff news flows and progress of the Republic’s EQDP.
