SINGAPORE (May 12): The Straits Times Index is on a tear. In the one-week period to May 9, the benchmark index gained 1.2%, buoyed by strong results from the banks. Notably, shares of DBS Group Holdings, Oversea- Chinese Banking Corp and United Overseas Bank rose after reporting better-than-expected results on the back of strong fee income growth and loan expansion.

“All three banks have displayed robust capital positions and sufficient provision for sour loans, the formation of which has shown signs of moderation as the oil price recovered from its recent low,” CMC Markets analyst Margaret Yang writes in an emailed commentary on May 9.

Unfortunately, our Singapore Market Portfolio was not able to reflect these gains, given our lack of exposure to the banking sector. To make matters worse, most of our holdings recorded declines during the week.

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