Singtel share price in nuclear meltdown”, I predicted that Singtel share price will collapse upon the announcement of a dividend cut. Indeed, Singtel share price plummeted upon the release of full-year financial result for FY2020 which saw full-year dividend being reduced to 12.25 cents. This is the lowest dividend since FY2005.In my previous article “
Many analysts may argue that it is the poor financial performance that wrecked Singtel share price. To this end, I do not disagree. Group revenue declined 5% while net profit crashed 65% year-on-year. However, most of the shareholders of Singtel are long-term investors and I honestly doubt that they are spooked by the financial result. It should be the massive cut in dividend that scared the living daylight out of investors.
Year-to-date, Singtel share price had tanked 27%. In fact, Singtel share price has crossed my previous target entry price of $2.60. At this moment, it is too early to tell if it is going to be light at end of tunnel for Singtel share price anytime soon. Nevertheless, at current trading momentum, this counter could test the low of $2.28 seen on 23 March 2020. That was the fateful day in which most, if not all, SGX crashed due to maximum fear induced by COVID-19 pandemic.
If Singtel share price does breach the support level of $2.28, expect all hell to break loose for this leading light of SGX. Under such circumstances, it may not be a bad thing for long-term investors seeking to accumulate this blue chip on the cheap. In this article, I will attempt to analyse the outlook for Singtel in FY2021.
Note that …Read more