--- title: Are Malaysian and Singapore Bank Shares Falling for the Same Reason? description: Malaysia bank shares and Singapore's DBS, OCBC and UOB all slid in early October 2026. Here is what links them, what does not, and what to watch next. image: https://www.thefinancialcoconut.com/hubfs/woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg --- [Skip to content](https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026#main-content) [![Full\_COlour](https://www.thefinancialcoconut.com/hs-fs/hubfs/Full_COlour.png?width=456&height=80&name=Full_COlour.png)](https://www.thefinancialcoconut.com/) - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) Open main navigation Close main navigation - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) - [Contact us](https://www.thefinancialcoconut.com/contact-us) [Contact us](https://www.thefinancialcoconut.com/contact-us) Oct 13, 2026, 12:00:00 PM # Are Malaysian and Singapore Bank Shares Falling for the Same Reason? ![Picture of The Financial Coconut](https://www.thefinancialcoconut.com/hs-fs/hubfs/Square%20(2)-3.png?width=50&name=Square%20(2)-3.png) [The Financial Coconut](https://www.thefinancialcoconut.com/blog/author/the-financial-coconut) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [![Follow The Financial Coconut](https://no-cache.hubspot.com/cta/default/46975693/interactive-182431637553.png)](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/redirect?encryptedPayload=AVxigLL2CjCe42iR2RH2MpVX0Ej%2BKJQ%2F3A0Z7pXnUs35To%2Bo6nbKcpBVq9I98X5NUungVEwfs5YCKuM%2FaP97VxIITkTlihT57%2F%2F4XDW9rT3VR4MatSLDi%2BMU5mbQqihfX3LRRz83ij8K19OiD8UXy8sdct4t0Q%3D%3D&webInteractiveContentId=182431637553&portalId=46975693)   **TL;DR:** - Yes, there is a shared trigger: surging long-term bond yields. But the details differ. - Malaysian banks face worries about bond holdings and capital, while Singapore's selloff also reflects profit-taking after record highs and an OCBC downgrade. Q3 results will show who is truly exposed. Malaysia bank shares and Singapore's big three banks fell for a shared reason: rising long-term bond yields hit bank stocks across the region in early October 2026. The company-level stories differ, though. Malaysian banks face bond-portfolio and capital concerns, while Singapore's drop also reflects profit-taking and a broker downgrade. ![](https://www.thefinancialcoconut.com/hs-fs/hubfs/city-skyline-with-data-overlay-2026-09-24-21-09-07-utc-jpg.jpeg?width=4500&height=3000&name=city-skyline-with-data-overlay-2026-09-24-21-09-07-utc-jpg.jpeg) ## What happened to Malaysian bank shares? - **1 October:** Maybank fell below RM10 for the first time in nearly nine months, closing at RM9.95, as rising bond yields hurt banking stocks, The Edge Malaysia reported. - **7 October:** The FBM KLCI fell 1.32% to 1,611.78, its lowest close since 10 December 2025, according to The Star. CIMB dropped 4.8% to RM7.33 and AmBank 4.48% to RM6.18. Hong Leong Bank fell 2.6%, RHB 2.4%, Public Bank 1.7% and Maybank 1%. - **Downgrades:** JPMorgan cut CIMB to "underweight" and AMMB to "neutral", warning that third-quarter surprises were "likely skewed negative for quite a few banks". The Bursa Malaysia Financial Services Index also hit a 10-month low. ## Is there a link to the Singapore bank selloff? Yes on the trigger, partly on the rest. Both markets were hit by the same global move. The US 10-year Treasury yield reached 5.32% on 7 October, after the Fed's September hike, according to Growbeansprout. Dealers quoted by The Star tied the Malaysian selloff to rising long-term yields that "weighed on financial stocks across the region". The same day, Singapore's STI fell 1.58% and the KBW Nasdaq Bank Index had dropped 12.3% from mid-August to 8 October. Other shared pressures: - **Foreign outflows.** Brokers cited persistent foreign selling in Malaysia. We found no equivalent figure for Singapore, so we do not claim one. - **Oil and geopolitics.** Brent crude hovered around US$101 a barrel on 7 October, alongside US-Iran tensions, per Malay Mail. - **Broker downgrades.** Malaysia had JPMorgan on CIMB and AMMB, while Singapore had Citi's "sell" on OCBC with a S$27.50 target. These are separate calls on separate banks, not one coordinated move. We could not confirm whether JPMorgan's note covers Singapore banks. ## ![](https://www.thefinancialcoconut.com/hs-fs/hubfs/woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg?width=6720&height=4480&name=woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg) ## How do the two selloffs differ? **Malaysia's concern is the bond book.** Affin Hwang Investment Bank said higher yields could weigh on non-interest income and capital ratios. It noted Maybank and Alliance Bank hold the longest bond durations, while Public Bank and Hong Leong Bank hold the shortest. In plain terms, banks holding longer-dated bonds suffer larger paper losses when yields rise. **Singapore's drop reads more like a reset.** DBS and OCBC hit record highs in early September and UOB peaked in July, so profit-taking played a role. Jefferies framed the fall as expectations and valuation rather than weaker fundamentals. Citi's OCBC call reportedly leans on margin pressure and valuation. **Policy timing differs.** MAS reviews policy on 14 October, with all 10 analysts in a Reuters poll expecting tightening. In Malaysia, The Edge says economists increasingly expect Bank Negara Malaysia to raise its policy rate in November. ## What should investors do with this? Treat it as education, not a trade signal. - **Check what you actually own.** Banks may sit in your direct holdings, ETFs and unit trusts at once. - **Look past the yield.** Dividend yields are estimates and can change. Compare them with safer options such as [Singapore Savings Bonds](https://www.thefinancialcoconut.com/blog/singapore-savings-bond-november-2026). - **Watch Q3 results.** They should reveal bond-portfolio losses, margins and payouts. ## FAQ 1. **Why are Malaysia bank shares falling?** Mainly rising long-term bond yields, foreign selling and broker downgrades. The Star and The Edge report no sudden collapse in earnings. 2. **Are Singapore and Malaysian banks falling for the same reason?** Partly. Both were hit by surging bond yields, but each market also has local factors. 3. **Which Malaysian banks are most exposed to rising yields?** Affin Hwang says Maybank, RHB and CIMB could see the largest capital-ratio declines, and Public Bank and Hong Leong Bank the smallest. This is one broker's view. 4. **Should I buy bank shares after a fall?** That depends on your goals and risk tolerance. This article is not financial advice. ## Closing The shared driver is global bond yields, but each bank's exposure differs. For analyst-led takes on investing, explore [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) and the [Invest hub](https://www.thefinancialcoconut.com/invest). If Malaysia matters to your retirement planning, see our [EPF vs CPF comparison](https://www.thefinancialcoconut.com/blog/epf-vs-cpf-2025), and join the community via the [TFC link hub](https://linkin.bio/thefinancialcoconut). #### References - The Star, [Banking losses drag FBM KLCI to lowest since December 2025](https://www.thestar.com.my/business/business-news/2026/10/07/banking-losses-drag-fbm-klci-to-lowest-since-december-2025) - The Edge Malaysia, [Maybank falls below RM10 for first time in nine months as rising bond yields hurt banking stocks](https://theedgemalaysia.com/node/820219) - The Edge Malaysia, [Malaysian banking stocks fall as JPMorgan downgrades CIMB, AMMB](https://theedgemalaysia.com/node/820864) - Malay Mail, [Bursa slides more than 1pc at midday as oil, foreign selling hammer sentiment](https://www.malaymail.com/news/money/2026/10/07/bursa-slides-more-than-1pc-at-midday-as-oil-foreign-selling-hammer-sentiment/238074) - Growbeansprout, [Why DBS, OCBC and UOB shares are falling](https://growbeansprout.com/dbs-ocbc-uob-share-price-oct-2026) - AsiaOne, [DBS, OCBC and UOB shares have fallen. Is it a good time to buy?](https://www.asiaone.com/money/singapore-banks-stocks-drop-dbs-uob-ocbc-share-price) - Reuters via Investing.com, [Singapore poised to tighten monetary policy](https://investing.com/news/economy-news/singapore-poised-to-tighten-monetary-policy-amid-strong-growth-and-rising-inflation-risks-4940164) - Traders Union, [Malaysian banking stocks fall after JP Morgan downgrades CIMB and AMMB](https://tradersunion.com/news/financial-news/show/3693193-malaysia-bank-stocks-drop-jp-morgan/) Let us know what you think about this topic, and what do you want to hear next. You can now be our community contributor and make a [pitch](https://thefinancialcoconut.com/contact/)to have your favourite personality be on our show. Join our [community group](https://linkin.bio/thefinancialcoconut/?fbclid=PAZXh0bgNhZW0CMTEAAaY2-JSYItZawSUnNP4YhAicLp0H2wXwx8EBmQgbzOJrjA6YRiPWXtFDSH4_aem_t1DMRY5jrSAapreaSX9ntw) and drop us your insights on this topic.   ### Stay ahead in your financial journey! Sign up for our newsletter to receive insights, tips, and strategies from The Financial Coconut Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg?height=200&name=woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg)](https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) ## [Are Malaysian and Singapore Bank Shares Falling for the Same Reason?](https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/singapore-2026-09-22-16-00-08-utc-jpg.jpeg?height=200&name=singapore-2026-09-22-16-00-08-utc-jpg.jpeg)](https://www.thefinancialcoconut.com/blog/mas-policy-review-14-october-2026-mortgage-savings) ## [MAS Policy Review on 14 October 2026: What Could It Mean for Your Mortgage and Savings?](https://www.thefinancialcoconut.com/blog/mas-policy-review-14-october-2026-mortgage-savings) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/WS2-4A.png?height=200&name=WS2-4A.png)](https://www.thefinancialcoconut.com/blog/how-a-longkang-cleaner-built-a-business-nearing-s3m-a-year-ws-s2-e3-ft-shaik-nifael) ## [How a Longkang Cleaner Built a Business Nearing S$3M a Year \[W&S S2 E3 ft Shaik Nifael\]](https://www.thefinancialcoconut.com/blog/how-a-longkang-cleaner-built-a-business-nearing-s3m-a-year-ws-s2-e3-ft-shaik-nifael) [![](https://www.thefinancialcoconut.com/hs-fs/hubfs/man-jogging-in-urban-green-space-2026-09-24-06-38-16-utc.jpg?height=200&name=man-jogging-in-urban-green-space-2026-09-24-06-38-16-utc.jpg)](https://www.thefinancialcoconut.com/blog/ozempic-vs-the-gym) ## [Ozempic vs the Gym: What Are Singaporeans Actually Paying For?](https://www.thefinancialcoconut.com/blog/ozempic-vs-the-gym) [Invest Popular](https://www.thefinancialcoconut.com/blog/tag/invest-popular), [Personal Finance](https://www.thefinancialcoconut.com/blog/tag/personal-finance), [Economics](https://www.thefinancialcoconut.com/blog/tag/economics), [Business](https://www.thefinancialcoconut.com/blog/tag/business) ## Let us know what you think of this post [![Logo\_White](https://www.thefinancialcoconut.com/hs-fs/hubfs/Logo_White.png?width=111&height=69&name=Logo_White.png "Logo_White")](https://www.thefinancialcoconut.com/) [facebook-f icon](https://www.facebook.com/financialcoconut/) [linkedin-in icon](https://sg.linkedin.com/company/the-financial-coconut) [TikTok icon](https://www.tiktok.com/@thefinancialcoconut?lang=en) [instagram icon](https://www.instagram.com/thefinancialcoconut/) [Follow us on Facebook](https://www.youtube.com/channel/UCREEmSahtQyTBjJudI6kgmg) [Follow us on Facebook](https://open.spotify.com/show/6ndJZx2bk8jYgQHAXIwg1C) [Follow us on Facebook](https://podcasts.apple.com/sg/podcast/the-financial-coconut-podcast/id1487004505) 6 Shenton Way, OUE Downtown 2, #07-13, Singapore 068809 Copyright © 2025 - - [About Us](https://www.thefinancialcoconut.com/about-us) - [Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) - [Blog](https://www.thefinancialcoconut.com/blog) - - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Business](https://www.thefinancialcoconut.com/business) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - - [Contact Us](https://www.thefinancialcoconut.com/contact-us) - [Work With Us](https://www.thefinancialcoconut.com/workwithus) - [Ask Our Experts](https://www.thefinancialcoconut.com/ask-us) - [Make Your Pitch](https://www.thefinancialcoconut.com/make-your-pitch) - [Service and User Agreement](https://www.thefinancialcoconut.com/service-agreement) - [Privacy Policy](https://www.thefinancialcoconut.com/privacy-policy) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "The Financial Coconut", "url" : "https://www.thefinancialcoconut.com/blog/author/the-financial-coconut" }, "dateModified" : "2026-10-13T04:00:00.249Z", "datePublished" : "2026-10-13T04:00:00.000Z", "headline" : "Are Malaysian and Singapore Bank Shares Falling for the Same Reason?", "image" : [ "https://www.thefinancialcoconut.com/hubfs/woman-using-atm-machine-on-city-street-2026-09-24-05-09-11-utc-jpg.jpeg" ], "mainEntityOfPage" : { "@id" : "https://www.thefinancialcoconut.com/blog/malaysia-singapore-bank-shares-falling-same-reason-october-2026", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.thefinancialcoconut.com/hubfs/Full_COlour-2.png" }, "name" : "The Financial Coconut" } } ```