What a brutal decline! DBS share price suffered a devastating 15% decline in the month of May. For sure, investors would love to see the back of May as DBS share price had one of the most terrible forms. Nonetheless, it should be highlighted that DBS share price is not alone in the carnage. Fellow competitors, OCBC and UOB suffered the same fate as well.
Apparently, the big boys decided to show hand after the release of a stellar Q1FY2019. On the surface, this is considered puzzling because DBS had actually produced a good financial performance. In view of this, it is only logically that DBS share price continued to climb. It is not unreasonable to assume that the solid results would fuel the bullish form of the DBS share price, which surged from $24 in January 2019 to $28.40 in end of April 2019. However, as the saying goes, Man proposes, God disposes.
Needless to say, the big boys were the ones extinguishing the fiery form of DBS share price. What is the intriguing reason(s) behind the sell-offs? Should investors hang on for their dear lives or throw in the towel?
DBS shares price in nuclear meltdown
As the leading light of SGX, big boys like to punt this counter. Thus, it is not prudent for investors to adopt a buy and hold strategy. A better approach should be hit-and-run. In life, don’t be too greedy.
Based on the below data compiled from SGX, DBS share price got stung by the big boys in the month of October which saw a high of 4 million DBS shares being shorted in the last week of that month. The heavy shelling caused DBS share price to fall from $26 to $23. The next heavy shelling occurred from mid-November to December 2018, which saw DBS price turning soft again. However, since mid-February 2019, the short selling subsided considerably, dropping from a high of 4.4 million in the week of 11 February 2019 to a low of 1.2 million in the week of 22 April 2019.
However, the big boys returned to haunt DBS share price last month. In the week of 13 May 2019, short selling of DBS shares rose to a peak of 6 million. On the other hand, fund houses also sold off DBS shares, making this counter the second highest net sell stocks among institutions in the month of May. These two factor combined to send DBS share price tumbling down the cliff.
The explosive meltdown of DBS share price triggered the management to launch [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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