Singapore Straits Times Index (STI) successfully bounced back from the 3400 support during the market correction last two months and on the way to test the 3800 historical high resistance.
The table below shown the 30 blue chips from STI ranked from strongest stock to weakest stock for past one year performance.
Bank sector are the strongest stocks to drive the STI.
The top 3 best performance stock are DBS, OCBC and UOB:
DBS (D05)
Annual Report:
2017
Chart:
OCBC (O39)
Annual Report:
2017
Chart:
UOB (U11)
Annual Report:
2017
Chart:
These 3 banks have the strongest balance sheet and highest shareholder return. Basically bank benefits from interest rate hike since 2015. Higher interest rate means bank are getting higher return from home loan, car loan, and other loans. Technically all these 3 stocks are still very strong uptrend and they just breakout from historical high last week. Breaking higher high is good BUY now to ride the trend. As long as it is still above 20 weeks moving average and forecast of interest rate hike continues, just hold it for long-term.
* I own shares of DBS.