Singtel share price in for terrifying ride

What a perfect storm for Singtel share price. Singtel share price is set to face reality once more as the telco announced a set of disastrous Q3FY2019 financial results which saw most business units reporting declining profits. Net profit declined 14% to $823 million due to increased competition in India. In my last article on Singtel share price, I predicted that this counter would enter 2019 in bad shape. Indeed, Singtel share price plunged to $2.86 on 3 January 2019 and only recently recovered to the $3.00 level. However, the recent financial results would likely roil Singtel share price again.

It appears to me that Singtel share price is set for a roller coaster ride as the Q3FY2019 results fell short of many analyst estimates. Most business units reported declining profits on year-on-year basis. To make matters worse, the latest results marked the fifth consecutive quarter of declining profits. The last time that Singtel recorded an improving quarter of profit was when it sold off majority stake in NetLink Trust. And that was in 2017.

Singtel share price

Investors would note that Singtel share price has been bearish in recent months. Nonetheless, the M1 general offer had led to a mini-recovery for Singtel share price because many observers deemed that the industry consolidation would benefit Singtel. But investors soon woke up to the fact that the key battles to be fought for Singtel are in overseas markets, and not in Singapore.

Although Singtel is the second largest cap in Singapore stock market, investing in this leading light of STI is not easy because this counter is susceptible to short-selling attacks. The recent financial results would provide the perfect basis for big boys to short Singtel share price. Due to this, Singtel share price is expected to experience much volatility in the coming months and investors must have the stomach to withstand the roller coaster ride.

Big boys to wallop Singtel share price?

I have written many times in this blog that no matter how good your stock analysis is, you would never beat the big boys if your strategies are on a collision path with them. So sometimes if you lose money in the stock market, it is not because you have poor investment foresight. But rather, it is because you have not done enough homework to avoid being injured by the big whales. In this article, I would share my analysis of the big boys’ movements and how they affect Singtel share price.

From November 2018 to January 2019, Singtel share price came under intense pressure due to heavy shelling from short sellers and net selling by institutional funds. November was the worst month which saw the most ferocious sell-offs and the top net sell among institutional players (-$80 million). The selling momentum carried on till December, albeit at lower volume. As a result, Singtel share price [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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Updated: February 18, 2019 — 6:01 am

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