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Analysts are 'overweight' on Singapore banking scene as US interest rates rise

Chloe Lim
Chloe Lim4/7/2022 03:18 PM GMT+08  • 6 min read
Analysts are 'overweight' on Singapore banking scene as US interest rates rise
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Analysts have kept their “overweight” ratings on the Singapore banking sector, in light of rising US interest rates in March.

PhillipCapital analyst Glenn Thum is positive on banks due to the effects of the increase in interest rates, as the three-month Swap Offer Rate (SOR) rose 31 basis points (bps) m-o-m to 0.79% while the three-month Singapore Interbank Offered Rates (SIBOR) was up 20 bps m-o-m to 0.67%-- its highest in 22 months.

Moreover, the three-month SOR is 25 bps higher than its 1QFY2022 average of 0.54% and has improved by 47 bps y-o-y. The three-month SIBOR is 14 bps higher than its 1QFY2022 average of 0.53% and has improved by 23 bps y-o-y, notes Thum.

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