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SingTel stock price collapsed amid short-selling attacks

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Class is permanent, form is temporary. On 28 June 2018, SingTel stock price collapsed to 9-year low, falling to as low as $3.08. Amid attacks by short-sellers, SingTel stock price retreated to below the psychological level of $3.10. At the rate of decline, SingTel stock price seems destined to free fall to below the $3 mark.

The devastating decline in SingTel stock price would have caused massive paper losses for many wealth builders. Investors would know the theory of “be fearful when the market is full of greed and be greedy when the market is full of fear”. Now that the opportunity arises to invest in a blue chip, would you go for it?

The long-term fundamentals of this evergreen blue chip remain intact. Henceforth, the current bearish trend may provide a good opportunity for investors to accumulate at attractive price. But having said that, it is important to be wary of the movement of the big boys because you don’t want to incur losses when these whales flipped.

Perfect storm

It certainly seems that the bears are out in full force and hell-bent on sending SingTel stock price to the bottom, wiping off $8 billion worth of market capitalization from SingTel stock price. This resulted in the dividend yield of SingTel to be 5.65%. While it may be tempting for investors to buy SingTel stocks on the dip, it pays to be careful of the big whales’ movements.

As can be seen from the data below, troubles started brewing when short-sellers short sold $60 million worth of SingTel stocks in the week of 7 to 11 May 2018. That really ignited the slippery slope of value destruction. SingTel stock price started falling from $3.55 to the current $3.08.

Weekly Short Sell Report Short Sell Volume Short Sale Value
18 – 22 June 2018 39.1 million $124 million
11-15 June 2018 39.1 million $126 million
4 – 8 June 2018 16.9 million $55 million
28 May – 1 June 2018 23.6 million $78 million
21 – 25 May 2018 35.9 million $120 million
14 – 18 May 2018 32.8 million $114 million
7 – 11 May 2018 16.9 million $60 million
30 April – 4 May 2018 14.6 million $51 million

 

Target board for short-sellers

There are a few reasons of SingTel being targeted by short-sellers. [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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SG Wealth Builder

Updated: June 30, 2018 — 2:15 pm

3 Comments

Add a Comment
  1. Thanks for a series of articles on the timely update of these telecom stocks.

  2. Hi Leonid,

    Thank you for your comments and your kind support.

    Regards,
    Gerald
    https://www.sgwealthbuilder.com

  3. sgwealthbuilder, thank you ever so for you post.Much thanks again.

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