Singapore Hot Stocks - Banking shares fall on investor caution

SINGAPORE Aug 8 (Reuters) - The benchmark Straits Times Index fell 0.63 percent lower as of 1013 GMT on Monday

The following stock was on the move:

** OCBC LEADS BANKING STOCKS LOWER

Shares of banking stocks fell on Monday after cautious investors moved to sell banks ahead of earnings this week, analysts said.

Shares of OCBC (OCBC.SI) fell by as much as 2.7 percent to S$7.61 while UOB slid by as much as 2.5 percent to S$17.24. Similarly, shares of DBS Group Holdings (DBSM.SI) fell by as much as 1.3 percent to S$13.70.

OCBC, Singapore's smallest listed bank, will announce its second quarter earnings later on Monday, which could see the lender reporting a 16 percent drop in quarterly earnings. DBS Group and UOB are expected to announce their results later this week.

OCBC announced late on Friday it may take a S$218 million hit in the third quarter after its insurance arm announced it will redeem policy holders' credit dertivatives at a loss.

"I think nobody wants to second guess how rosy the results could look like," said a trader from a local broker. "Banks have risen but now at this stage analysts are voicing out warnings again that it is not boom time and that people should rein in their most bullish expectations." (Reporting by Brenda Goh; Editing by Saeed Azhar)