LIFETIME MEMBERSHIP Has DBS Group Holdings share price fulfilled its destiny? On 14 April, I wrote that DBS Group Holdings share price could smash past $30 following the release of the first quarter business update. Indeed, DBS Group Holdings share price did not fail to disappoint investors. Recently, the counter hit the record high of $30 on the back of a stellar financial result.
For perspective, the Group’s first-quarter 2021 net profit doubled from the previous quarter and increased 72% from a year ago to $2.01 billion. Thus, the buoyant form of DBS Group Holdings share price is not unexpected. To put the icing on the cake, it was the first time that DBS’ quarterly earnings crossed $2 billion. The solid financial result is amazing given that global economy is still in the doldrum amid the global pandemic crisis. Question now is: where would DBS Group Holdings share price go from here?
Since November 2020, DBS Group Holdings share price basically went on a rampage. The counter surged from $21 to the current $30. The roll-out of COVID-19 vaccination had ignited hopes of a global economic recovery in 2021. Arising from this, institutional funds started to rotate out of technology stocks and poured funds into bank stocks.
Incidentally, the past six months also saw DBS making two strategic acquisitions that could shape the performance of DBS Group share price in the years to come. In November 2020, DBS completed the take-over of Lakshmi Vilas Bank in India. Then in April 2021, DBS acquired a 13% stake in Shenzhen Rural Commercial Bank for $1.079 billion.
As a leading light of SGX, DBS Group Holdings share price is closely watched by many analysts. This is because the counter, being a proxy of Singapore economy performance, is largely driven by market sentiments. In my opinion, if not for the Phase 2 (Heightened Alert), DBS Group Holdings share price could have hit greater heights on the back of the solid financial results. The initiation of the Phase 2 (Heightened Alert) in early May had raised concerns of potential economic impacts, thereby dampening the form of DBS Group Holdings share price.
While DBS Group Holdings share price is expected to remain volatile in the short-term due to the COVID-19 pandemic, this is a growth stock that investors should consider holding for the long-term. In my previous article in 2019, I have shared that my vision that DBS Group Holdings share price could reach $50 in the future. In this article, I will share more insights on the outlook for DBS Group Holdings share price.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in DBS Group Holdings share before. Whether DBS Group Holdings share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
DBS Group Holdings share price in whole new world
Based on recent developments, it appears to me that DBS Group is focusing on three areas to engineer future growth – expanding core banking businesses in the Asian region, enlarging its wealth management moats and leveraging blockchain technology. These strategic moves, if executed well, could really turbocharge DBS Group Holdings share price to [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.]LIFETIME MEMBERSHIP
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