Investors seem to believe US President-elect Donald Trump’s promises of tax cuts and deregulation will keep propelling US equities to new heights. The S&P 500 index, already up 20% over the first 10 months of 2024, began another surge on Nov 4 that subsequently gained momentum after Trump’s win a day later. The index then reached an intra-day all-time high of 6,099.97 on Dec 6, before retreating slightly after the December Federal Open Market Committee meeting to end the year at 5,881.63, up 24% over the year.
But Trump’s protectionist trade stance — coupled with his threats of tariffs — could be inflationary for the US economy. While Fed officials delivered another 25 basis points (bps) of rate cuts in December 2024, they dialled back expectations to just two more cuts this year, fewer than previously forecast.
This has thrown a spanner in the works for Singapore’s REITs, which have erased the unit price gains they had accrued in the lead-up to September 2024’s long-awaited 50 bps Fed rate cut. In fact, S-REITs broadly ended the year at levels last seen in mid-August 2024, before the Fed had eased monetary policy for the first time in four years.
The Straits Times Index, on the other hand, began a strong rally in mid-August 2024. The benchmark index, which tracks the performance of the top 30 companies listed on the Singapore Exchange (SGX), subsequently closed at 3,822.68 points on Dec 5, an all-time high.
Investors here are no doubt making the most of this volatile period, scooping up S-REITs while taking profit from local blue-chips. Now, these traders can unlock even greater rewards — and enjoy an upgrade to a premier banking tier — through a new programme by OCBC Securities.
OCBC Securities’ new securities transfer programme invites customers to consolidate their assets in one place through a “seamless and fuss-free process” via the iOCBC Mobile Trading app or iOCBC online trading platform.
By transferring shares to a Basic Cash Trading Account, Share Financing Account or Online Equities Account with OCBC Securities, customers can even receive a cash reward and bonus interest on their savings.
Securities listed in Singapore, the US or Hong Kong are eligible under this new programme. From now until March 31, 2025, customers who transfer their shares to OCBC Securities can enjoy up to $2,000 in cash rewards.
Those who move a minimum of $1.5 million in fresh funds and equities — of which a minimum of $50,000 must be in equities — will receive $2,000 in cash. They will also be eligible for an OCBC Premier Private Client account, designed to serve high-net-worth clients.
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Meanwhile, customers who move a minimum of $350,000 in fresh funds and equities — with a $50,000 minimum in equities — will receive $800 in cash. They will also be eligible for an OCBC Premier Banking account — the bank’s branding for priority banking clients.
While customers who move a minimum of $100,000 or $50,000 to OCBC Securities will not qualify for either Premier tier, they will receive $200 or $100 in cash rewards respectively.
In addition, customers who deposit at least $80,000 into an eligible savings account within seven working days of submitting the online application will receive bonus interest of 2.95% per annum on top of the 0.05% base interest rate.
To qualify, customers must hold the funds in the account for three months from the first successful transfer, and the bonus interest earned is capped at a maximum of $2 million. Customers will receive the cash rewards by the end of the second month after the end of the holding period.
No matter the amount, all transfer-in fees, sub-account maintenance fees, corporate action handling fees and cash dividend fees are waived for Singapore shares custodised with OCBC Securities.
While a brokerage account allows investors to trade shares through a chosen broker, the Central Depository (CDP) account is where all the shares purchased from the local stock market are placed.
OCBC Securities is among a handful of brokers that allows for instant transfer of shares from CDP to the selected broker’s trust account. Customers can open an account with OCBC Securities and perform the share transfer from CDP without having to submit a form.
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Besides OCBC Securities, other brokers offering the share transfer programme include Phillip Securities, UOB Kay Hian, Maybank Securities and Lim & Tan Securities.
Wilson He, managing director of OCBC Securities, points to a recent shift in investing behaviour. “Today’s investors, especially younger ones, are increasingly digitally-savvy and favour a self-directed investing approach. It is therefore important for them to have a clear overview of their portfolios in order to manage them well and access relevant information.”
By waiving fees and eliminating the hassle of filling in multiple forms in person, OCBC Securities has made it easier and more cost-effective to transfer shares digitally from CDP, adds He.
In 2024, OCBC Securities introduced A.I. Oscar, an AI-powered trading assistant that delivers personalised stock ideas based on investors’ trading history. “With this easy share transfer initiative, customers can now consolidate their holdings into a single account, enabling A.I. Oscar to provide even more tailored stock ideas based on their consolidated portfolio. They can also take full advantage of the other tools and resources that OCBC Securities offers.”
