UOB failed to clear horizontal resistance at 18.98 and the 50-day moving average last week. The stock started to pull back after it had shaped a bearish dark cloud cover candle at this barrier on Wednesday. Yesterday's drop below support around 18.54 has deteriorated the short-term technicals. A test of minor support at 18.00 and crucial support 17.80 would not come as a surprise. The latter level is the lower confine of the longer-term trading range established since November 2009. Sustained violation of this area would generate a sell-signal targeting 16.54 and then 16.00/16.12. Next resistance is seen at 18.56. A decisive close above 18.98 is needed to provide a short-term buy signal targeting around 19.76.

/dbwarrants/

 

UOB, reported earnings of S$706 million ($552.7 million) in the fourth quarter ended Dec 31, up from S$522 million a year ago, helped by a rise in fee and commission income.

UOB reported net interest income during the fourth quarter fell 3 percent from a year ago despite a 13 percent rise in net customer loans, hurt by the contraction in net interest margin to 1.91 percentage points from 2.07 in the third quarter.

Looking ahead, UOB CEO Wee Ee Cheong said the bank was “confident of delivering robust growth this year”.

Shayne Heffernan has confirmed a strong buy issued December 30, 2010 for UOB Bank Singapore with a price target of $26 in 2011. The stock closed over $18 today.

United Overseas Bank Limited (UOB or the Bank) is principally engaged in the business of banking in all its aspects, including the operation of an Asian Currency Unit under the terms and conditions specified by the Monetary Authority of Singapore (MAS).

The principal activities of its major subsidiaries include commercial banking, merchant banking, leasing, insurance, investment, investment management, gold/futures dealing, property, property management and travel.

The Bank provides a range of financial services through its global network of branches, offices, subsidiaries and associates, personal financial services, private banking, commercial and corporate banking, investment banking, corporate finance, capital market activities, treasury services, futures broking, asset management, venture capital management, insurance and stockbroking services.

In August 2009, the Bank announced that its subsidiaries, UOB.Com Pte. Ltd. and FEB Realty Company Pte Ltd commenced voluntary liquidation and since then has continued to consolidate operations.

United Overseas Bank Ltd. has entered into an agreement to purchase banknotes businesses of HSBC Holdings plc units in five Asian markets. The total consideration for the transaction is $15 million in cash, United Overseas Bank Ltd. said in a statement. Under the agreement, the HSBC Holdings plc will license to United Overseas Bank Ltd. the technology system used in connection with banknotes business in Singapore, Hong Kong, Japan, Beijing and Taiwan. Completion of the transaction is expected to take place in the fourth quarter of this year, United Overseas Bank Ltd. said.

United Overseas Bank Ltd. (UOB) announced that it has subscribed for another 456 million new ordinary shares in Evergrowing Bank Co., Ltd, China (Evergrowing Bank), at RMB3 per share in cash (Subscription), as part of the latter’s private placement to existing and new investors. Together with UOB’s purchase of 260 million shares in June 2008 and receipt of 104 million bonus shares in December 2009 from Evergrowing Bank, UOB now owns 820 million shares or approximately 12.06% of the enlarged issued share capital of Evergrowing Bank.