DBS surges to all-time high of $52.87, lifts STI to fresh record

DBS shares hit an all-time high on Sept 10, lifting the Straits Times Index (STI) to a fresh record above 4,340 points.

- Benjamin Lim

Singapore's largest bank touched a peak of $52.87 during the day, before closing at $52.73, up 3.64 per cent from the previous day's close of $50.88. The STI rose 1.1 per cent, closing at 4,346.46 points.

Maybank's head of equity research, Mr Thilan Wickramasinghe, suggested that the correlation between DBS' and STI's performance might be attributed to the perception of the bank as a proxy for safe haven flows into Singapore.

"With a number of geopolitical flashes in the Middle East and regionally this week, there is likely some flight to safety and quality." He added that DBS' dividend yield is highly visible until 2027, and with expectations of further interest rate cuts from the US Federal Reserve in September, the bank is an attractive proposition for investors.