S'pore stocks rise; OCBC up after bank justifies $1.4b offer for GE

STI up almost 6% in week even as volatility persists in global markets over US tariffs

- Kang Wan Chern

Local stocks jumped last week. The Straits Times Index on April 17 closed at 3,720.33 points, up almost 6 per cent through the week, even as volatility persisted in global markets in response to tariffs by the US.

The benchmark blue-chip index rebounded despite Deputy Prime Minister Gan Kim Yong warning that the escalating US-China trade war and potential new tariffs on semiconductors and pharmaceuticals, key Singapore exports, have created significant uncertainty and downside risks for the Republic.

Mr Gan on April 16 spoke at the first meeting of a team of ministers and industry experts tasked with helping local businesses and workers cope with the impact of the US tariffs.

OCBC JUMPS AFTER CHAIRMAN DEFENDS GE TAKEOVER OCBC Bank was among the gainers on the index last week, rising 6.5 per cent to close the week at $15.98.

The stock jumped almost 2 per cent on April 17, when the bank addressed questions on why OCBC is raising its stake in Great Eastern (GE) and if the $1.4 billion it has offered to buy up the insurer's shares is appropriate.

Speaking on April 17 at the bank's annual general meeting (AGM) for the financial year ended 2024, OCBC chairman Andrew Lee emphasised that GE directly contributes nearly $1 billion in annual profit to OCBC and plays a growing role in the bank's earnings.

OCBC, which has had a controlling stake in the insurer for almost three decades, now owns 93.7 per cent of GE.

Mr Lee said OCBC plans to double down on its strategy of combining banking, insurance and wealth management under one group, which has helped it become Singapore's largest wealth manager with more than US$300 billion (S$392 billion) in assets under management.

That is what sets OCBC apart from its local peers DBS and UOB, which are pure-play banks, he said.