Market Seeks Higher Dividends as Singapore Banks Report Earnings
- MAS move to lift payout cap seen as positive for sector stocks
- OCBC and UOB report earnings on Wednesday, DBS on Thursday
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The fate of Singapore’s bank stock rally is seen hinging on what the lenders plan to pay out to investors from their earnings after the central bank lifted restrictions on dividends.
The Monetary Authority of Singapore’s decision to end caps on lenders’ dividends just a few days ahead of the quarterly earnings season may act as a positive catalyst for sector socks, according to analysts. Banks are among top gainers on the Straits Times Index this year, with the biggest names rising by an average of 20% on bets that rising bond yields will aid their earnings.