SINGAPORE (Oct 28): Oversea-Chinese Banking Corp's newly merged OCBC-Wing Hang Bank is poised to benefit from higher interest rates in Hong Kong, according to DBS Vickers.
The higher rates, expected next year, will be a "net positive" for OCBC, said DBS Vickers analyst Lim Sue Lin in a note today. She has a "buy" call and $12.70 target on the stock.
"The heat is on for interest rates to start rising towards 2H15. The quantum is expected to be larger in Hong Kong versus Singapore and WHB is poised to be a beneficiary of a rate hike in Hong Kong."
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