August 2, 2013 / 2:32 AM / 5 years ago

STOCKS NEWS SINGAPORE-DBS, UOB outperform OCBC after results

Shares in Oversea-Chinese Banking Corporation Ltd fell after worse-than-expected quarterly results, underperforming rivals DBS Group Holdings Ltd and United Overseas Bank Ltd whose results beat forecasts.

OCBC, Singapore’s second-largest bank, posted an 8 percent drop in quarterly profit, while DBS and UOB reported net profit growth of 10 percent and 9.9 percent respectively.

DBS, Southeast Asia’s biggest bank, rose 1.3 percent to S$17.47, on course for a second day of gains and the sixth straight week of climb. Investors viewed the end of the company’s deal to purchase a controlling stake in PT Bank Danamon Indonesia Tbk, in addition to upbeat results, as positive signs.

“Without Danamon, we believe DBS can pay higher dividends going forward and we revise our DPS (dividend per share) estimates higher based on a 40 percent dividend payout ratio,” said Barclays in a note.

The bank’s longer-term regional expansion will lag behind its peers that already have a large presence.

OCBC shares inched down more than half a percent to S$10.60, off a two-month high of S$10.72 hit in the previous session. Great Eastern Holdings Ltd, OCBC’s insurance arm that had reported a 77 percent drop in profit, was down 0.8 percent.

Singapore’s benchmark Straits Times Index inched up 0.3 percent to 3,253.63 points.

In other stocks, COSCO Corp (Singapore) Ltd shares dropped as much as 2.7 percent to a 1-1/2-week low of S$0.725, after the company reported a 56 percent fall in its quarterly net profit.

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