Broker: OCBC Investment Research
Date of Report: 8 August 2025

Global Market Insights and In-Depth Singapore Stock Analysis: DBS, REITs, Banks, and More

Global Market Pulse: Key Developments Across US, Europe, and Asia

United States:

• Markets initially rallied on news of new US tariffs on countries lacking trade agreements, but enthusiasm faded later in the session.
• The Nasdaq Composite rebounded to close at a record high, up 0.35%, led by tech stocks. Apple surged 3.2% following tariff exemptions for companies shifting chip production to the US.
• Semiconductor stocks like Micron and AMD advanced, while Intel slid 3.1% after President Trump called for its CEO to resign.
• Bond yields rose: 10-year Treasury yield at 4.24%, 30-year at 4.82%, following a weak auction. Jobless claims increased to 226,000, above expectations.

Europe:

• The Stoxx Europe 600 Index climbed 0.92%, led by autos, travel, and tech. Telecoms and energy lagged.
• Optimism grew around a possible Ukraine ceasefire, bolstered by news of an impending Trump-Putin meeting.
• UK’s FTSE 100 fell 0.7% as the Bank of England cut rates but signaled a slower balance sheet run-off. The pound strengthened, negatively impacting UK stocks with significant overseas revenue.

Asia:

• MSCI Asia Pacific Index rose 1%, marking a fourth consecutive day of gains. Taiwan’s benchmark soared over 2%.
• Chipmakers outperformed as US manufacturing reduced exposure to new tariffs. Indian equities dropped after the US doubled tariffs to 50% on imports from India.
• Thailand’s main index neared bull market territory.

Singapore Market Snapshot: Strong Activity and Notable Gains

• Volume: 2,028.7m (+36.3%), Turnover: 2,125.9m (+55.1%)
• 52-week range: 3,229.2 – 4,274.3
• Gainers/Losers: 332 / 195

World Indices Performance

Research Highlights: DBS Group Holdings Ltd Delivers Robust Performance

DBS Group Holdings Ltd (DBS SP): 2Q25 Results and Upgraded Outlook

• Fair Value Raised to SGD54 (from SGD50) following a strong 2Q25 performance.
• Net Earnings: 2Q25 net profit at SGD2.82b, beating market expectations.
• Net Interest Margin (NIM): Eased from 2.12% in 1Q25 to 2.05% in 2Q25. Net interest income at SGD3.65b (down 2% QoQ, 1% YoY).
• Card Fees: Improved to SGD302b in 2Q25 from SGD297b in 1Q25.
• Allowances: Reduced from SGD325m to SGD133m.
• Non-Performing Loans (NPL) Ratio: Stable at 1.0%.
• Return on Equity (ROE): 17.0% in 2Q25 vs 17.4% in 1Q25.

Wealth Management:

• Record 1H25 wealth management income at SGD2.84b (up from SGD2.62b in 1H24).
• 2Q25 income of SGD1.35b, the second-best quarter on record.
• Non-interest income now about 56% of total income (vs 48% in 4Q24), presenting further cross-selling opportunities with a rising AUM base (now SGD442b).

Digital Asset Strategy:

• DBS continues to lead in digital assets, focusing on becoming a trusted partner for regulated stablecoin issuers.
• Digital asset business generated SGD30m last year and is growing in significance.

Guidance and Outlook:

• Net interest income expected to be slightly above 2024 levels, supported by strong deposit growth and proactive hedging.
• Commercial book non-interest income seen growing mid- to high-single digits; wealth management income to grow double digit.
• Cost-to-income ratio targeted below 40%.
• Specific provisions projected to normalize to 17-20 bps in 2H25.
• Net profits for FY25 to be slightly below FY24 due to the new global minimum tax of 15%.

Base Dividend & Buyback: SGD3.00 dividend and ongoing share buyback program to support share price. DBS shares are up 10.4% since May 2025.

ESG Updates

• DBS leads global peers in corporate governance and board structure.
• Three-year average staff turnover at 12% (above industry average of ~9.3%).
• ESG weighting: Social (54%), Governance (33%), Environmental (13%).
• Scores above industry average in Environment and Governance; below average in Social due to human capital and data privacy concerns.

Latest Analyst Reports: Broad Sector Coverage

Singapore Blue Chips: STI Stocks by Market Capitalisation and Investment Metrics

Further detailed tables for the next 20 STI stocks are available in the report, outlining dividend yields, P/E ratios, and consensus recommendations for each stock.

Conclusion: Navigating Volatility with Strong Fundamentals and Strategic Guidance

The report underscores the resilience of global markets amid tariff and macroeconomic headwinds, with Singapore equities demonstrating healthy activity and select blue chips, especially DBS Group Holdings, outperforming expectations. Investors are urged to keep a close eye on sectoral shifts, rising intra-regional trade, and ongoing digital and ESG transitions. The broad coverage of Singapore’s leading stocks and sectors provides actionable insights for portfolio positioning in the months ahead.