0746 GMT [Dow Jones] OCBC (O39.SG) +1.5% at S$8.09, clearing S$8.00 for first time since August and faring better than peers, helped by bank's US$500 million bond sale to shore up capital base. "Over the next six to 12 months, OCBC's capital position will remain solid with a high core Tier 1 capital ratio of around 10%," says Barclays Capital. Notes this, together with its non-performing assets coverage ratio of 103% and below-average gross NPL ratio of 1.8%, underpins OCBC's strong loss absorption capacity. All three Singapore banks increased loan-loss coverage sequentially in 3Q09 to protect against losses from bad loans. OCBC's bonds will bear 4.25% annual interest rate from time of issue date to Nov. 18, 2014. OCBC will use proceeds to fund general corporate purposes. Stock unlikely to test year-to-date high of S$8.20 set in August. DBS (D05.SG) +0.6% at S$14.02, UOB (U11.SG) +0.5% at S$18.50. (FKH)

0304 GMT [Dow Jones] Daiwa upgrades Singapore bank sector to Positive from Negative as thinks non-performing loans have peaked. "We believe the worst of the asset quality problem is over and that they offer solid defensiveness if the Singapore and other Asian economies slip back into recession." Says OCBC (O39.SG), rated Outperform, is top pick due to its superior asset quality, upside potential from successful integration of ING's Asian private bank operations, possible cash return to shareholders. Also advises investors to buy UOB (U11.SG), rated Outperform, on any share price weakness. But maintains Underperform rating on DBS (D05.SG) as says bank is weaker vs peers in terms of asset quality, provision cover and return on equity. DBS +1.6% at S$13.94, OCBC +1.0% at S$7.98, UOB +1.6% at S$18.28; STI +0.6%. (KIG)