MPT

The Straits Times Index fell 72.91 points, or 1.36%, to close at 5,303.83 on Monday — its lowest closing level in nearly four months — after opening sharply lower and trading between an intraday high of 5,354.12 and a low of 5,262.85. The three local banks led the session's declines, with OCBC down 3.31%, DBS down 1.94% and UOB down 1.72%, while gains were concentrated among conglomerates, shipbuilders and real estate names, led by Jardine Matheson and Singapore Airlines.

Monday's slide followed a regional risk-off tone, with Asian currencies broadly weaker ahead of inflation data and Korean stocks diverging from a wider AI-sector selloff; six-month HIBOR rose to 3.46% and markets positioned for an expected Bank of England rate increase to 4% later this week. The local banks bore the brunt of the pressure as DBS, OCBC and UOB prepare to close out Singapore's third-quarter earnings season this week: analysts flagged that wealth-management fee income may retreat from recent peaks even as new net inflows continue to support assets under management, a caution that weighed more heavily on the three lenders than on the broader market. The index opened down as much as 1.87% before paring losses into the close, as Jakarta's market rebounded in the same session, underscoring that Monday's pressure was concentrated in Singapore rather than broad regional contagion.

Session Movers

Jardine Matheson (J36.SG, +2.1%) rose to $58.88 after 1947 Trustee, an entity closely associated with certain company directors, acquired 153,000 shares for US$8.97 million at US$58.65 apiece on Thursday — insider buying disclosed just ahead of Monday's session. The move came alongside a steady nine-month report from Indonesian associate PT Astra International, which held net income excluding one-off items at Rp24.6 trillion as automotive and financial-services growth offset weaker mining-equipment demand, while completing Rp10.0 trillion in share buybacks since November. Shares trade cheaper than roughly 22% of the past five years, with a consensus Strong Buy rating implying about 39% upside to a target of $81.80.

OCBC (O39.SG, -3.31%) fell to $28.32, the worst performer among the three banks, as local coverage flagged that third-quarter earnings due this week may disappoint, with wealth-management fee income seen retreating from a recent peak even as new net fund inflows continue to support assets under management. The decline came against a backdrop of broader regional caution — Asian currencies weakened ahead of inflation data and six-month HIBOR climbed to 3.46% — as DBS and UOB prepare to report alongside OCBC this week. Shares trade at 2.05 times book, cheaper than only about 23% of the past year, with a consensus Buy rating implying roughly 10% upside to a target of $31.27.

Singapore Airlines (C6L.SG, +1.49%) advanced to $6.79 after agreeing to purchase up to 4,800 tonnes of next-generation sustainable aviation fuel from Aether for delivery starting in 2028, extending its push to lock in low-carbon fuel supply. The gain came even as the carrier confirmed its Singapore-Dubai flights remain cancelled through February 2027 due to the Middle East situation, and as reports emerged that Air India is considering hiring an SIA finance executive as its own chief financial officer. Shares trade cheaper than about 97% of the past five years, with a consensus Hold rating implying roughly 3% upside to a target of $6.97.

UOB (U11.SG, -1.72%) slipped to $40.66, tracking the same earnings-season caution weighing on OCBC and DBS ahead of this week's results, with analysts flagging a potential pullback in wealth-management fee income. The bank also raised rates on its Stash savings accounts to an effective annual rate of up to 1.92% from November 1, a routine move to retain retail deposits that did little to offset the broader pressure on bank shares. Shares trade at 1.38 times book, cheaper than only about 8% of the past five years — among the richer valuations in the sector — with a consensus Hold rating implying roughly 8% upside to a target of $43.72.

One point worth noting

Only 12 of the 30 basket constituents closed lower on Monday, fewer than the ten that advanced, yet the index posted its steepest single-day drop since early October — a reminder of how much of the STI's point movement rests on the three heavily weighted banks. It also marked a second consecutive session in which DBS, OCBC and UOB moved in the same direction: Friday's uniform decline was shallow (DBS -0.91%, UOB -0.31%, OCBC -0.17%), but Monday's synchronized slide was five to ten times deeper, arriving just as all three prepare to report third-quarter results this week.