We are looking closely at the mini sell-off of the Big 3 Singapore banks last week, and sees this as a potential opportunity.

Investors are fearing that their valuations is unsustainable at this point, but we see an opportunity for a dividend play.

This week, we will take a quick look at DBS, UOB and OCBC to examine their risk-reward ratio.

Before we proceed, we have some interesting content this week that might change how you think about your portfolio!

Netflix $NFLX ( ▼ 2.87% ) : Netflix is going to lay off about 1,000 of its employees, which represent 6% of its workforce. Most of these layoffs will be in product, tech, legal and HR teams. On another news, its chief content officer, Bela Bajaria is reportedly leaving, and will be replaced by Disney’s executive Peter Rice [Read More]

Bank of America $BAC ( ▼ 0.91% ) : Latest financial results disappointed. Revenue was below expectations due to its trading divisions, with its profits dropping by 17% from a year ago. Meanwhile, it also got hit by a US$1.2 billion penalty by U.S. regulators. [Read More]

KFC $KO ( ▲ 2.07% ) : KFC is switching to Coca-Cola beverages in its U.S. restaurants from Pepsi, after decades. It is losing business to Chick-fil-A and is looking to attract back U.S. customers through more diverse sets of drinks like what its other competitors are doing [Read More]

Johnson & Johnson $JNJ ( ▲ 0.9% ) : Johnson & Johnson posted weak medical device sales due to geopolitical issues in the Middle East. This will be its second consecutive quarter that MedTech fell below expectations. Middle East customers are allocating their budgets towards defense, rather than healthcare [Read More]

Wells Fargo $WFC ( ▲ 1.35% ) : Latest financial results were mixed. Profits did beat expectations but its net interest income and revenue were below. [Read More]

BYD $BYDDF ( ▲ 0.11% ) : BYD is planning to aggressively expand in Europe, as it looks to hire 40,000 workers by 2030. It is looking to become the biggest employer in the region, and is hiring workers from the automotive and adjacent industries, and also workers who were being laid off [Read More]

Starhill Global REIT: The REIT is divesting its commercial property in Japan for 6.2 billion yen, which represents a premium of 53.8%. This means that the REIT no longer has any exposure to the Japanese market. [Read More]

Beng Kuang: Beng Kuang’s current orderbook stands at SG$71.5 million with 84% of them coming from its subsidiary, Asian Sealand Offshore and Marine (ASOM). Most of its contracts involve servicing FPSOs and FSO vessels [Read More]

AirTrunk: Airtrunk, a data centre operator is reportedly delaying its IPO of a REIT in Singapore until next year, citing higher interest rates and volatile market conditions. [Read More]

Parkway Life REIT: Parkway Life REIT is acquiring three nursing homes in France for SG$56.5 million, as it looks to scale up its operations there. The REIT will now hold 14 properties in the country, which is valued at SG$234 million [Read More]

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👆️ Sell-Off Opportunity: Since the beginning of the month, DBS share price have declined by as much as 5.3% to a low of SG$73.36 on 9 October 2026. Since then, it has recovered to SG$74.11.

DBS valuation has become expensive recently. Price-to-earnings is currently trading at 18.7 times, much higher than the historical average of 11.5 times (2021 to 2026).

💪 Investment Case: DBS is still Singapore’s most valuable company. Among the Big 3 banks, it is the biggest and has wide and diverse operations in the region.

Dividend yield is still steady at 4.0%, and analysts are still projecting revenue and earnings to be up in 2027.

❓  Market Analysts: Average target price is at SG$79.92 with an implied upside of +7.8%

👆️ Sell-Off Opportunity: OCBC share price declined by as much as 9.3% to as low as SG$29. Share price still remains on that level.

Similar with DBS, valuations are relatively expensive too, with price-to-earnings ratio trading at 16.6 times compared to the historical average of 10.2 times.

💪 Investment Case: Valuation-wise, discounted cash flow shows that the company is potentially undervalued by 24.4%. Dividend yield is still stable at 3.8%.

❓ Market Analysts: Average target price of SG$31.02 with an implied upside of +7.0%.

👆️ Sell-Off Opportunity: Share price declined by as much as 7.8% to a low of SG$39.96. It has since recovered to SG$41.61.

Price-to-earnings ratio is trading at 14.7 times, much higher than the historical average of 10.7 times.

💪 Investment Case: UOB is quite attractive from a DCF perspective. It indicates that the stock is 38.1% undervalued. Dividend yield is also decent at 3.7%.

❓  Market Analysts: Average target price of SG$44.17 with implied upside of +6.2%.