Singtel share price is so bad its good

It seems like Singtel share price is in the mood for love again. After ex-dividend in July, Singtel share price suffered its seasonal meltdown, falling from a high of $3.56 in early July to the current low of $3.13. As one of the biggest telecom players in the region, Singtel is a blue chip. So the current bearish Singtel share price may represent a good opportunity to accumulate.

On 2 July 2019, I warned that Singtel share price would be entering a dark chapter but is still considered a good company to invest for the long run because of its massive economic moat. Although this counter is ideal to hold for the long-term, investors must set appropriate entry-levels. Some members have enquired my entry level, which I have revealed to be $2.60.

Singtel share price

Based on the on-going market trend, it is possible that Singtel share price could reach the level of $2.60 in the coming months. According to data, the lowest level for 2019 was $2.86 recorded on 3 January 2019. So unless the management announced some hugely positive news, such as the monetization of its loss-making ventures (cybersecurity and digital life businesses), it would take a herculean effort to reverse the bearish sentiments for this leading telco.

The wheels finally came off the wagon for Singtel share price as the feel-good factor of Netlink Trust finally dissipated. Now, the telco is at a cross-road as it is fighting battles at two fronts – increasing competitions faced by its regional associates and perennially loss-making Digital Life Group. But in the midst of addressing these business issues, Singtel share price also suffered brutal decline resulting from short-selling activities and the impact from the economic downturn.

Singtel share price assaulted by big boys?

As one of the biggest Straits Times Index (STI) constituents, Singtel share price is vulnerable to short-selling attacks. You don’t really need to short all the counters to bring down SGX. Instead, the big boys typically targets blue chip like Singtel and DBS. In July 2019, fund houses fled this counter as it made its way into the top 3 net sold counters, with $81.9 million being net sold by institutions.

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Then, in the week of 26 August 2019, 24.6 million Singtel shares were shorted, sending Singtel share price tumbling off the cliff. Prior to this, in the week of 12 August 2019, 25.9 million shares were shorted and in the last week of July, 24.7 million shares were shorted.

The short-selling attacks seemed to come in waves, suggesting that the big boys [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: September 3, 2019 — 9:40 am

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