DBS Bank, OCBC Bank, and UOB all hit historic price milestones, even as broader market volatility persisted due to geopolitical tensions and shifting gold prices, according to market data from the week ending July 10.
Banking Sector Rally and Structural Shifts
DBS Bank surpassed the $70 threshold on July 9, closing the week at $70.45, a 5.7 per cent gain. OCBC Bank and UOB followed, closing at $27.43 and $44.38 respectively, marking significant weekly increases of 8.46 per cent and 10.12 per cent. Analysts attribute this momentum to robust wealth management performance and consistent dividend yields.
Liquidity for these stocks may increase further following a Singapore Exchange announcement on July 1. The exchange will reduce the standard board-lot size from 100 units to 10 units for stocks priced between $10 and $100, a move specifically designed to make local bank shares more accessible to retail investors.
Pro Tip: When board-lot sizes decrease, retail investors can enter positions with lower capital requirements, often increasing trading volume for high-priced blue-chip stocks.
Geopolitical Fatigue and Market Resilience
While Singapore Airlines saw a brief dip due to oil price volatility linked to US-Iran tensions, the Straits Times Index (STI) remained resilient, finishing the week up 4.29 per cent at 5,469.29. James Ooi, market strategist at Tiger Brokers, noted that investors appear “fatigued and desensitised” to geopolitical cycles, shifting focus instead toward local company fundamentals.
This behavior marks a departure from earlier in the year, when regional tensions frequently triggered broad sell-offs across the STI. The current market environment suggests that investors are placing higher weight on domestic economic data and specific corporate performance than on international headlines.
Gold Market Dynamics and Economic Uncertainty
Gold prices, which traded near US$4,100 per ounce on July 9, remain sensitive to US monetary policy. A weaker-than-expected June jobs report previously fueled hopes that the Federal Reserve might limit future rate hikes, which historically bolsters gold as a non-interest-bearing asset. However, prices faced pressure later in the week following comments from US President Donald Trump regarding the status of the US-Iran ceasefire.
James Steel, chief precious metals analyst at HSBC, suggests that gold’s trajectory is increasingly detached from immediate geopolitical conflicts. Instead, long-term drivers such as global fiscal deficits and the need for portfolio diversification are expected to exert more influence over the metal’s price in the coming months.
Singapore’s Role in the Global AI Race
Data from an eToro survey of 1,000 retail investors in May 2026 shows that 51 per cent of Singaporean investors expect AI stocks to rise through 2026. This sentiment outpaces the global average of 44 per cent. Market analyst Zavier Wong of eToro points to the city-state’s unique positioning between the US and China as a primary driver for this optimism.
The infrastructure supporting this growth is significant. JPMorgan analysts reported on July 7 that Singapore remains one of the world’s most expensive data centre markets, with rents ranging from US$330 to US$475 per kilowatt monthly. Despite high construction costs—averaging US$12 million per megawatt—the market maintains near-full occupancy, providing operators with strong pricing power.
Recent Market Debuts and Corporate Moves
New listings have seen mixed performance. Foundation Healthcare, which debuted on July 8, closed its first week at 74 cents, slightly below its 76-cent IPO price, despite being 9.4 times subscribed in its public offer. Meanwhile, Kin Global continues to face headwinds, closing at 18 cents on July 10, over 21 per cent below its April IPO price of 23 cents.
On the property and workspace front, JustCo is repurposing the former Taste Orchard site into “JustCo Place.” The project, launching in September, integrates co-working, retail, and co-living spaces, with Deloitte Singapore already committed to occupying two levels of the facility.
Frequently Asked Questions
- Why are Singapore bank shares hitting record highs?
Expectations of higher-for-longer interest rates, strong wealth management momentum, and upcoming earnings reports have driven demand. - How will the Singapore Exchange board-lot change affect me?
Starting soon, you will be able to buy stocks priced between $10 and $100 in lots of 10 instead of 100, lowering the barrier to entry for blue-chip stocks. - What is driving gold prices currently?
While geopolitical tensions cause short-term swings, analysts point to global fiscal deficits and economic uncertainty as the primary long-term drivers for gold.
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