S'pore banks slip on concerns that US tariffs could impact S-E Asia

OKP shares hit 10-year high, buoyed by property and construction boom

- Kang Wan Chern

Singapore's three listed banks fell last week as a trade war intensified between the US and its trade partners, and as concerns emerged that the next wave of US tariffs could impact South-east Asia.

UOB fell the most, sliding more than 5 per cent to close the week at $36.71. DBS Bank, Singapore's largest bank, fell by 3.5 per cent over the week to close at $44.25, while OCBC Bank dropped 3.5 per cent to $16.48 over the period.

The banks snapped an upward share price streak that drove both DBS and UOB to all-time highs earlier in February, as President Donald Trump's tariff threats on the US' major trading partners and retaliatory moves from those affected stoked fears of a US economic downturn and spooked markets globally.

In the United States, a stock market slump on March 10 wiped out US$4 trillion (S$5.33 trillion) from the S&P 500's peak in February, although share prices recovered at the end of the week — led by a rebound in technology giants Nvidia and Tesla.

Still, more volatility should be expected after Mr Trump ordered a series of air strikes on Houthi-held areas in Yemen over the weekend. Despite the attack having killed at least 18 civilians, he has promised to use "overwhelming lethal force" until the Iranian-backed Houthi rebels cease their attacks on commercial ships in the Red Sea.

The Houthis have targeted over 100 merchant vessels in the Red Sea with missiles and drones between late 2023 and January 2025, sinking two ships and killing four sailors, in a campaign of support for the Palestinians.

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Shares of property developer City Developments Limited (CDL) closed flat at $5.05 last week, after they initially jumped by as much as 4.7 per cent to $5.17 shortly after markets opened on March 13.