WALL Street continued its recovery on Monday and this helped the
Straits Times Index (STI) jump 46.16 points or 1.6 per cent to 2,897.41
on Tuesday, bringing its two-day rebound to 105 points or 3.8 per cent.
Once again it was blue chips which provided most of dollar volume -
of the whole market's 1.5 billion units worth S$1.2 billion that was
traded, S$944 million or 79 per cent was done in the 30 STI components.
Excluding warrants, there were 263 rises versus 138 falls.
Among the banks, OCBC ended S$0.11 higher at S$9.06 on volume of six
million. Nomura in a Oct 1 Quick Note on OCBC said that it continues to
have a "buy" rating on the stock as it believes the bank has strong risk
management and a strong balance sheet which will serve it well during
this cyclical downturn.
"In addition we believe higher interest rates in Singapore will help
cushion its net interest margins from downside pressure from its
overseas operations," said Nomura. "We view the current valuations of 1x
12-month forward book as a good entry point."
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