SGX drops up to 6% on Downgrade, Spotlight on DBS, OCBC, UOB as FOMC looms

SG DLC News
09-16

$SGX(S68.SI)$ came under selling pressure on Monday (14 September), falling more than 6% after Macquarie downgraded the stock to “Underperform” from “Neutral”, before recovering slightly to close 5.72% lower.

The stock extended its decline following the downgrade, falling a further 1.66% on Tuesday (15 September) before slipping approximately 0.6% as of 10:00am Singapore time on Wednesday (16 September).

Amplifying the move, the $SGX 5xShortSG280725(8I3W.SI)$ has surged ~45% since the close on 11 September, while the $SGX 5xLongSG280516(JLFW.SI)$ has fallen approximately 36% over the same period.

Looking ahead, attention turns to the FED rate decision this week, with markets pricing in more than 90% probability of a 25-basis-point rate hike.

Singapore banks could benefit if the rate increase materialises, supported by the potential uplift to net interest income.

$OCBC Bank(O39.SI)$ led gains on Wednesday morning, rising approximately 1.1% as of 10:00am Singapore time.

Correspondingly, the $OCBC 5xLongSG280223(9RWW.SI)$ gained approximately 5.5%, while the OCBC 5x Short DLC (9DAW) declined by a similar magnitude.

Investors with a bullish view can consider Long DLCs for leveraged exposure, while bearish investors can consider Short DLCs for inverse exposure across a broad range of U.S., Hong Kong and Singapore single stocks and index underlyings.

View the full list of DLCs here.

This advertisement has not been reviewed by the Monetary Authority of Singapore. This advertisement is distributed by Société Générale, Singapore Branch. This advertisement does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

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