[SINGAPORE] A surge of institutional capital into the Singapore market is driving local banks into uncharted territory, with DBS shares breaching the S$70 threshold for the first time.

The counter rose 1.4 per cent, adding S$0.94 to hit an intraday high of S$70.04 within the first few seconds of trading on Thursday (Jul 9). Shares of OCBC rose as much as 2.8 per cent to another record of S$27.54, while those of UOB climbed as much as 1.2 per cent to S$43.87.

This drove the Straits Times Index up as much as 1 per cent to 5,424.02 points.

The record-breaking run comes as investors get a foot in ahead of the upcoming corporate earnings season in early August. With the local trio historically offering robust yields, traders appear to be actively locking in shares to capture first-half dividend payouts.

This week’s momentum builds on a structural rally that began earlier in the month. The initial leg of the banks’ record run was sparked in early July by a bullish Citi target price upgrade and a reversal in banking system liquidity, which eased concerns over deposit costs and loan margins.

The banking sector’s strength is also serving as a barometer for a fresh wave of institutional capital flowing into the Singapore market.