DBS’ (D05.SG) sale of its asset management arm to Japan’s Nikko Asset Management, announced during midday break, not expected to have material impact on share price near term.

Move deemed strategic, allowing DBS to focus on banking operations in core Singapore, HK markets while letting more established Nikko drive asset management business.

DBS’ intention to take 7.25% stake in Nikko post-sale suggests bank still confident of business, but would rather have Nikko take charge. Nikko, owned by Sumitomo Trust & Banking, has US$120 billion ($156.4 million) of assets under management vs DBS’ $28.4 billion.