OCBC share price on the way to $11
On 9 November 2020, I wrote that OCBC share price was poised for an upturn and could potentially hit $10.00. Since then, OCBC share price went on a splendid run to smash past $10.00 within a span of just two weeks. The superb form of OCBC share price caught many investors, including myself, by surprise.
The main catalyst for OCBC share price should be attributed to the possibility of COVID-19 vaccination deployment in December, sparking widespread pent-up expectations of macroeconomic recovery in 2021. Indeed, 2020 has been such a wretched year for OCBC share price that any positive developments in the fight against COVID-19 pandemic raise expectations of a global economic recovery.
Another catalyst for OCBC share price was the Lion Global Investors’ listing of tech-focused ETF on SGX. The ETF tracks technology companies listed in Hang Seng. As Lion Global Investors is the asset management arm of OCBC, the ETF should give OCBC share price a shot in the arm and fuel the bullish form of OCBC share price.
The third driving force for OCBC share price should be the stellar performance of its wealth management unit – Bank of Singapore. The acquisition of Barclay’s wealth management business in Singapore and Hong Kong in 2016, coupled with the acquisition of National Australia Bank’s wealth management business in Singapore and Hong Kong in 2017, bolstered the wealth management’s clout.Read more