SINGAPORE (Reuters) - Shares of Singapore's DBS Group Holdings and Oversea-Chinese Banking Corp opened sharply higher after both reported record quarterly profits in the first quarter.
DBS shares opened 1.5 per cent higher, while OCBC shares gained 2.2 per cent after their results beat market estimates, powered by double-digit growth in loans and improving interest rate margins.
Shares of United Overseas Bank, which will report earnings after market hours, rose 1.8 per cent.
"With this set of results, we believe that all three banks will outperform today in a knee-jerk reaction this morning,"said CIMB banking analyst Kenneth Ng. "Banks certainly look like a clear sector to overweight in a rising rate environment."
The benchmark Straits Times Index was up 0.8 per cent.