Singapore licensed digital banking and stocks

Singapore licensed digital banking, shares of the “big” banks all fell

Asia-Pacific stocks were mixed in the first day of the week on December 7 when Japanese, Hong Kong and China markets struggled to find a point of increase.

Shares of major banks in Singapore all fell on December 7 trading day after the news that the country’s government granted the first license to operate in digital banking for some units, including related companies. joint venture between Singtel and its partner. Photo: Shutterstock

The Asia-Pacific stock market is still quite quiet although investor sentiment has improved somewhat since the end of last week thanks to expectations of Covid-19 vaccine resistance and the new US economic stimulus package.

Shares of large-scale traditional banks in Singapore fell down today, while the Straits Times index was flat. Specifically, shares of DBS Group lost 1.21% while shares of OCBC Bank and United Overseas Bank decreased by 069% and 1.13%, respectively.

Last week, the Central Bank of Singapore confirmed that some units will be licensed to operate digital banking in this country. Among these companies, the joint venture between Singtel Telecom Group and Grab Technology Company is notable as it is one of the first licensed to operate in the digital banking sector in Singapore. .

According to Moody’s, the licensing of digital banking in Singapore is a certain threat to the largest banks operating in the island nation, for example DBS, OCBC and United Overseas Bank.

Eugene Tarzimanov, a credit expert at Moody’s said that the competition between small banks operating in Singapore but owned by foreign countries will increase heat by small banks with modest operations. will face greater risks before the encroachment of digital banks.

Australian stocks remained in green with the ASX 200 index rose 0.62% to 6,675 points, while the separate financial index edged up 0.28%. Energy and oil stocks moved up with Rio Tinto up 2.46%, Woodside Petroleum (0.65%), Fortescue (up 3.78%), and BHP (up 2.14%). .

In Japan, the Nikkei 225 decreased by 0.61% while the Topix index lost 0.79%. The Korean stock market today reversed to cut loss and reached a modest increase of 0.15%.

Mainland Chinese stocks today were tinged in red with the Shanghai Index falling 0.81% to 3,416.60 points, while the Shenzhen Composite and Shenzhen Component slipped 0.301% and 0.38% respectively. On the Hong Kong market, the Hang Seng index lost 1.2% to 26,513.52 points.

Vishnu Varathan, an economist and strategist at Mizuho Bank, assessed that the stock markets are going up thanks to expectations for Covid-19 resistant vaccine. Pharmaceutical firms Pfizer and Moderna have just submitted a license to use Covid-19-resistant vaccines with the US Food and Drug Administration. These two units may be given the green light to put the vaccine into service in mid-December.

In related developments, last week the UK became the first country in the world to allow the use of Covid-19-resistant vaccines jointly developed by Pfizer and BioNTech Biotechnology Company.

On the currency market, the US dollar index against other strong currencies continued to slide down to 90,746 points from 91.80 points set last week. Currency experts Commonwealth Bank (Australia) forecasts that the greenback will continue to fall this week, regardless of economic data tending to get better.

Japanese Yen appreciated and converted 104.07 JPY / USD compared to 104.23 JPY / USD set up last week, while Australian dollar also inched 0.1% to 1 AUD / 0.7428 USD.

Oil prices in Asian markets declined today. Crude oil futures price of the US slid 0.41% to $ 46.07 / barrel, while Brent crude oil futures price dropped by 0.35% to $ 49.08 / barrel.

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