DBS Group Holdings share in bloodbath with Hin Leong

Sign up for only $19.99! In March 2020, DBS announced a staggering pay check of $12.1 million to CEO Piyush Gupta for leading the bank to the Promised Land – DBS’ total income had more than doubled, net profit has tripled, and market capitalisation had nearly doubled in FY2019. However, almost half of his annual salary was in the form of the company’s share plan. Thus, the upheaval of DBS Group Holdings share price in recent months must have left a bitter taste in CEO Piyush Gupta’s mouth.

DBS Group Holdings share in explosive meltdown

DBS Group share price in dark chapter with virus

DBS Group Holdings share price ambushed by coronavirus?

Previously, the supreme form of DBS Group Holdings share price was largely due its strong financial results, which was fuelled by its aggressive loan growth strategy. With $362 billion gross loans, DBS is the largest lender in Singapore. In comparison, UOB holds $269 billion while OCBC holds $264 billion of loans.

DBS Group Holdings share price

For sure, CEO Piyush likes to put his money where his mouth is. In 2016, he bought $2.8 million of DBS shares at the peak of the oil crisis. At that point of time, he was confident that DBS Group Holdings share price was undervalued. Time flies. 2020 saw oil price plunged into negative territory while COVID-19 virus brings the global economy into a complete standstill. The market chaos led to a bloodbath for DBS Group Holdings share price.

Singapore has the world largest bunkering port due to it’ strategic geographical location. So the collapse of Hin Leong is unlikely to cause major disruption to the country’ oil trading hub ecosystem. But the downfall of the homegrown oil trader could be a harbinger of things to come for DBS Group Holdings share price as the unprecedented negative …

Read more

UOB share price exploded with Hin Leong

Sign up for only $19.99! Troubles certainly come in troops for UOB share price. Amid the devastating fallout from COVID-19, UOB share price slipped following news that DBS, OCBC and UOB were faced with $870 million loan exposure to embattled home-grown oil trader, Hin Leong.

UOB share price hammered by coronavirus

UOB share price in royal rumble with DBS and OCBC

UOB share price fought back after bizarre plunge

UOB share price

The fall of Hin Leong cannot be underestimated as it is one of the largest marine fuel suppliers in Singapore. It also came at a time when global crude oil was trading at negative prices due to oversupply issue and price war between Saudi Arabia and Russia. Oil crisis is certainly not a new risk for local banks. In the 2014’s oil crisis, UOB share price got hammered as well, falling from $24 in May 2015 to the abysmal low of $17 in February 2016. But this time round, things may not be so straightforward for UOB share price.

To be honest, I have never seen such great chaos in my life. The pandemic crisis had effectively brought global economy to a complete standstill. And now with this oil crisis unfolding, the road to economic recovery will surely be long and arduous. Being the bellwether of the economy, has UOB share price seen its best days or has this counter bottomed out? In this article, I will share my insights on the two financial metrices that would shape UOB share price in the coming months.

Like many counters, it seems that UOB share price had bottomed out on 23 March 2020. The massive stimulus package unleashed by US government had restored much-needed sanity to the stock markets. Similar in Singapore, the government had announced three Budget stimulus packages aimed at cushioning …

Read more

Earn 2.8% interest from SGX Securities Borrowing and Lending (SBL) program

Sign up for only $19.99! COVID-19 has ravaged the entire global financial markets and upended numerous industries. To tackle the massive fallouts, US Federal Reserve pull out all stops to contain the explosive impacts of this unprecedented black swan event in modern days.  Arising from this interest rates has plummeted to abysmal levels yet again, leading to “cash is trash”. Against such backdrop, the interest rate of SGX Securities Borrowing and Lending (SBL) program could be lucrative.

How does SGX Securities Borrowing and Lending (SBL) work? In Singapore, investors can either lend their existing shares to brokerage firms or SGX. By lending out shares, they can earn interest fees. Conversely, investors can also borrow shares to do short-selling. In the course of doing so, you need to pay borrowing fees.

SBL

In this article, I will provide my insights on the pros and cons of lending shares to SGX Securities Borrowing and Lending (SBL) program. Something that needs to be highlighted is that this article will touch on only the lending program of SBL. As I am not into short-selling activities, the borrowing facility of the SBL is not covered in this article.

Disclaimer for this article: SGX did not pay me to write this article nor am I promoting SGX Securities Borrowing and Lending program. In addition, the information contained in this article is based entirely on my research obtained from content provided in SGX website. I do not have experience lending shares to SGX. So investors should seek advice from financial consultants before lending out shares.

Earn and invest with SBL?

Some people may compare bank savings interest rates earned to lending out shares. Technically, this is not wrong. However, in my perspective, I view it more of hedging against investment losses. Apart from the capital gains and …

Read more

SIA share price in darkest chapter

Sign up for only $19.99! It is a battle that SIA cannot afford to lose. Currently, SIA share price is fighting for its life as COVID-19 completely razed air travel to the ground. With numerous airlines expected to file for bankruptcies in the coming months, many analysts claim that the aviation sector may never recover to the pre-crisis level. This is indeed the darkest chapter for SIA share price.

SIA share price faces brutal meltdown

SIA share price to rock or melt with Special Share?

SIA share price crashed into wall

SIA share price nearing 20-year low

SIA share price in crisis mode

SIA share price

For sure, the coming announcement of the full-year financial result and the mega rights issue will be a massive baptism of fire for SIA share price. Indeed, the next two weeks will be critical as the national carrier navigates through this crazy storm. In view of this, expect plenty of volatility for SIA share price.

The current crisis completely dwarfed previous crises such as the Asian Financial Crisis of 1998, the dotcom bust in 2000, 9/11 terrorist attacks of 2001, the SARS of 2003 and Great Financial Crisis of 2008. In each of those crises, SIA share price had always managed to bounce back in impressive form. But this time round, things are not so straightforward.

On 10 March 2020, all hell broke loose for SIA share price as the counter collapsed from $7.88 to an abysmal low of $5.36 on 23 March 2020. The crash of SIA share price was largely due to the implosion of oil price war between Saudi Arabia and Russia. The face-off caused global oil prices to fall by a stunning 30%. Typically, the fall in oil price bodes well for airlines because fuel component makes up the second largest expense after …

Read more

OCBC share price in explosive free fall

Sign up for only $19.99! What a roller coaster ride for investors! COVID-19 pandemic crisis had ignited one of the biggest equity sell-offs in modern history as investors fled for their lives. The Straits Times Index (STI) plunged by a terrifying 17% to reach the abysmal level of 2,208, a level last seen in June 2009. Being one of the leading lights of STI, OCBC share price was not spared from the carnage.

OCBC share price in devastating bloodbath

OCBC share price to increase three-fold in decade?

OCBC share price led to my first investment in decade

OCBC share price

But what made this crisis so extra-ordinary is that it coincided with the oil slump. It is reported that OCBC, DBS and UOB collectively faced with loan exposure of $600 million to embattled oil trader, Hin Leong Trading. As a result, OCBC share price took a beating in recent days. As the double whammy crises unfold, expect plenty of volatility for OCBC share price.

Since 23 March 2020, OCBC share price had recovered from a low of $7.80 to reach the current $8.80 level. The recovery was due to improved market sentiments following the massive US’ two trillion dollar stimulus package. Nevertheless, I am hesitant to claim that OCBC share price has reached a bottom.

The current public health is unprecedented and resulted in global lockdowns. At this point of writings, at least 2 million people had been infected globally and 125,000 deaths. The figures could be much higher due to purported government cover ups and difference in testing across countries. The damage to the economy would be tremendous. Banks would be the first to hit as they are the bellwether of the economy. In view of this, investors should brace for more volatility ahead for OCBC share price.

Question now is: will …

Read more

KIT share price to fight to the end

Note: This article has been edited to incorporate clarifications from KIT.

Sign up for only $19.99! Will Singapore’s largest infrastructure business trust, Keppel Infrastructure Trust (KIT share price), be the last man standing? Amid the violent upheaval in the stock market, it seems that KIT share price will fight to the very end.

On 10 March 2020, I wrote that KIT share price would be stung by the collapse of the oil price. Indeed, the following day, KIT share price collapsed from $0.51 to reach a crazy low of $0.36 on 19 March 2020. The meltdown prompted the management to conduct shares buyback to halt the collapse of KIT share price. By 3 April 2020, 4.75 million of KIT shares had been repurchased.

KIT share price safe haven from virus?

KIT share price to suffer same fate as Hyflux?

KIT share price

Previously, I have pointed out that KIT share price has a strong correlation with oil price because it owns one power-plant, Keppel Merlimau Cogen (KMC) Plant, which has been making huge losses since the start of the oil slump in 2014. For full-year 2019, losses before tax for KMC amounted to $40 million, an increase from $33.6 million in last year.

KIT management has clarified that oil price fluctuations has no bearing on the performance of the Keppel Merlimau Cogen (KMC) plant. Under the 15-year Capacity Toll Arrangement (CTA) with Keppel Electric, KMC receives capacity payment from Keppel Electric for making available the full capacity of the plant. This capacity payment is paid monthly regardless of actual power production of the plant and does not vary with electricity demand. At the same time, the cost of fuel is borne directly by Keppel Electric. This has provided KIT with healthy and stable, as well as predictable cash flows every quarter.

In addition …

Read more

Lippo Malls share price collapsed after SGX queries

Sign up for only $19.99!

The unfolding COVID-19 has claimed the first S-Reit casualty in Eagle Hospitality Trust. Which will be the next one? In view of the plunging Lippo Malls share price over the course of last month, investors must be living in fear. Looking back, Lippo Malls share price was actually cruising along finely in 2019 with the strengthening of Indonesian rupiah until COVID-19 came along to mess things up.

Year-to-date, Lippo Malls share price plummeted by a whopping 52%, making it one of the worst SGX stocks to own. Apart from COVID-19, what could be the other dark forces behind the meltdown of Lippo Malls share price? In my view, besides macro factors, it is also important to pay attention to the business fundamentals because that will shape Lippo Malls share price even in the midst of market chaos.

Lippo Malls share price

Temasek Holdings lost its pants in Lippo Malls Indonesia Retail Trust?

Lippo Malls Indonesia Retail Trust in dark chapter

Nightmare of Lippo Malls Retail Trust

With effect from 1 April 2020, all of LMIR Trust’s portfolio of 23 retail malls and seven retail spaces will be temporarily closed except for essential services. The period of closure will be for a minimum of two weeks till 14 April 2020. At this point of writing, it is difficult to assess the full financial impact of the crisis on Lippo Malls financial performance but interestingly, the biggest correction of Lippo Malls share price occurred after SGX queries issued on 2 March 2020.

The SGX queries centred on three questions relating to the full-year financial statement released on 19 February 2020. By and large, it was a good financial result but credit to SGX, the regulator asked some very good questions. Most retail investors may not be sharp enough to pick …

Read more

SIAEC share price plunged into hell

Sign up for only $19.99!

It seems that hell has a special place for SIAEC share price. The coronavirus outbreak imploded out of nowhere to cause the entire aviation industry to come to a grinding halt, leading global airlines to ground their fleets. The latest government order to close down workplaces (except for essential services) in Singapore will further roil SIAEC share price to no end.

SIAEC share price and ST Engineering in bizarre tale

SIAEC share price in bloodbath with Temasek Holdings

SIAEC share price

Year-to-date, SIAEC share price plunged by a staggering 44%. This made SIAEC share price one of the biggest falling stars among the SGX shares. Against this backdrop, investors must be having plenty of sleepless nights and wonder if SIAEC share price will recover from this nightmarish run. The coming full-year financial result will be a litmus test for SIAEC share price as the MRO stalwart navigates through this dark chapter of aviation.

The grounding of aircraft among global airlines will hurt SIAEC’s MRO business and dented SIAEC share price. From a technical point of view, when an aircraft is grounded, a large portion of the maintenance works which are based on interval of flight hours or flight cycles need not be carried out. Of course, there are calendar-based maintenance works but they are mainly for metallic structures that are prone to corrosion. However, new aircraft like B787 and A350 are composite planes that do not corrode easily. Thus, the grounding of aircraft will drastically impact the volume of business for SIAEC.

The situation is indeed grim for SIAEC share price. At current level, this counter is trading at similar level last seen in 2009, which was the peak of the Great Financial Crisis. The difference is that SIAEC share price has yet to hit the bottom under …

Read more

SGX share price generated 588% returns!

Sign up for only $19.99!

Crisis? What crisis? SGX share price laughed off talks of impending recession as it turned bullish amid the ongoing virus outbreak. Traditionally, SGX share price is not a safe haven against crises but volatility in the stock market is good for stock market operators like SGX because of the increased in revenue from clearing fees.

In fact, if you purchased 1000 shares of SGX shares in November 2000 and held it till now, the returns would be an incredible 588% based on current SGX share price of $9.22. I don’t know which stock that had generated so much returns for investors and is not affected by the current coronavirus.

Even more bizarrely, SGX share price actually benefitted from the ongoing crisis as market turnover for equities and exchange-traded funds jumped 44% and 245% respectively in February. The market volatility also saw increased interest in daily leverage certificates and structured warrants. The number of monthly active participants climbed 55% year-on-year, while the outstanding value of leveraged products held surged three-fold.

SGX share price in sparkling form after reporting highest profit in 11 years

Bonds to the rescue for SGX share price

Indeed, coronavirus had destroyed thousands of lives and upended various industries. Most blue chips suffered carnage as investors fled for their lives and dumped their holdings. In this regard, many investors may argue that fundamental analysis is useless during massive market corrections because investors will sell indiscriminately anyway. While I do not disagree with this argument, the performance of SGX share price may confound critics.

SGX share price

Year to date, SGX share price had increased from $8.86 to the current $9.17. While the 3% increase of SGX share price is not something to shout about, such performance is certainly impressive given the current climate. In the context …

Read more

SIA share price faces brutal meltdown

Sign up for only $19.99!

Is the worst over for SIA share price? In all honesty, I don’t know. At this point of writing, the number of people infected by COVID-19 stood at 784,000 and number of deaths amounted to 38,000. The epic USD2 trillion stimulus package by US government had provided some boost to the stock market. But whether this is a sustainable run or just a bull trap remains to be seen. In this regard, is this a false dawn for SIA share price?

SIA share price to rock or melt with Special Share?

SIA share price crashed into wall

SIA share price nearing 20-year low

SIA share price in crisis mode

SIA share price

Indeed, the devastating COVID-19 has brought the entire aviation industry to its knee and roiled SIA share price to no end. With border controls tightening around the whole world, the national carrier is forced to cut its flight capacity by a staggering 96%. In the early days, I predicted a V-shape recovery for SIA share price using 2003 SARS as point of reference. But it seems that I had grossly underestimated the impact of COVID-19.

With so many aircraft grounded, the airline could be facing cash flow issue in the coming months. That is probably the reason for the cash call made on 26 March 2020. The rights issue and mandatory convertible bonds would help to provide critical cover for capital and operational expenditure requirements. But what stunned investors must be the steep discount (53.8%) to SIA share price of $6.50 on 25 March 2020.

The theoretical ex-rights SIA share price is indicated as $4.40. Currently, SIA share price is trading at $5.80. In view of this, I expect this counter to be bearish in coming weeks. Also, note that this is a renounceable rights …

Read more

Powered by WishList Member - Membership Software