The banks of Singapore

There are many banks in Singapore, because Singapore is a financial hub. Many of these banks are of foriegn nature, focussing on business transaction and mostly do not branch out throughout Singapore.

Technically, there are only 3 banks that is ome grown: Development Bank of Singapore (DBS), United Oversea Bank (UOB) and Oversea Chinese Bank Corporation (OCBC). 

However, there were more than these 3 banks in Singapore. As far as I can remember, there are also Oversea Union Bank (OUB), Tat Lee Bank and POSB. 

During the 90s, the banks were more than banks, they extended their businesses into financing and properties.

These banks were "asked" to merged during the financial crisis in the 90s. The government led by Lee Hsien Loong at the time demand merger between banks. OCBC merged with Tat lee Bank, while DBS purchased POSB, which caused a stir in the market because POSB was with a much larger capital size than DBS. 

There was some resistance with UOB-OUB merger, and I remembered Lee Hsien Loong at the time threatened with consequences should the merger did not proceed.

I still ponder the reason for these mergers, because it is not a business decision but a political one. Were the mergers of the banks a front to justify the acquisition of POSB by DBS? POSB at the time was the largest bank in Singapore with majority of Singaporean have their money deposit there, at the same time, it was not known for its involvement in the commercial world. As a result, it has a large capital reserve.

It was believed at the time that the reason for DBS acquisition of POSB as to enable its utilization of this capital reserve. Was this desperation the result of the financial crisis?

I still remember the price of DBS was around SGD9.00 per share while UOB and OCBC was around SGD7.00 when I first engaged in the stock market by 1998. I is probably worthwhile to take a look now to see how far they go now especially when these are part of STI component and a major part of Temasek investment.

Fig 1. OCBC weekly chart

OCBC is the cheapest bank of the three by price per share. This may be due to the fact that OCBC by tradition is conservative in its business behavior. It prefers to play safe. 

The counter has been on a 60-degree climb since 22nd September 2025, am I seeing buying euphoria in OCBC? 

What might be alarming is the drop in its volume since 3rd of November 2025. Like what my teacher used to say, "not enough fuel to burn."

As far as the moving average set up, it is not ready to reverse. Instead, it may lead to congestion before reversing. Afterall, there is a need for top formation before clear signal from this counter to justify so.

Where are the resistance for OCBC then?

I would consider SGD21.08 to SGD22.09 to be a viable zone that will slow and possible congest OCBC.  

As far as support concern, I consider the present 55-MA support level of SGD17.37 a possible level should reversal happens.

Fig 2 UOB weekly chart

The share price of UOB is much higher than OCBC with its last closing at SGD36.74. I still remember the knowledge of UOB when I was young, my family used to all it the 4 toothpicks due to its logo of 4 straight vertical lines strike by 1 horizontal line.

 

A mild difference from OCBC, UOB did not witness a breakout from its previous high of SGD39.20. While beginning its climb after 3rd November 2025, the volume is already on decline.

It is still possible for UOB to climb higher, with caution. I see resistance by SGD38.40 follows by SGD41.57.

Should it reverse, which is a mild possibility, the first level of support should be its 55-wek moving average of SGD34.91. This follows by its 61.8% projection support of SGD31.00, but for this level to valid, UOB cannot cross SGFD37.36.

Fig 3. DBS weekly chart

Ok, I have to amid, when I first saw the DBS chart, I thought the price for this counter is crazy! It closed at a staggering level of SGD 59.12.

Unlike, UOB, it broke out from its previous high of SGD6.97. At the same time, it did not move at a 60-degree angle, it is more like a 45-degree steepness. Seems like DBS is not as exciting as OCBC. 

At the same time, I am not seeing a 5-wave movement, as the bottom of the "4th wave" violated the top of the "1st".

Unfortunately, I am limited in my Fibonacci set up, with only 1 pull back available to me. Base on this, resistance I can see is SGD59.45, and if broken through, next level is SGD73.64. 

As for support, I am using the 55-week moving average as reference. Should it correct, SGD49.40 would be a sustainable level.