LIFETIME MEMBERSHIP What an ambush! It seems to me that the big boys had staged a sneaky ambush on OCBC share price (SGX: O39). From a high of $12.46 on 10 August, OCBC share price collapsed by 7.3% to reach a low of $11.55 on 27 August. The spectacular fall of OCBC share price within the span of two weeks certainly caught many investors by surprise. To make matters worse, the correction of OCBC share price was the worst among the three banks (DBS shares fell by 5.0% while UOB shares fell by 4.7%).
Looking back, the lifting of dividend restrictions by the Monetary Authority of Singapore (MAS) had provided plenty of fireworks for all three bank stocks, including OCBC share price. Subsequently, the OCBC’ stellar 1HFY2021 financial result pushed OCBC share price to a high of $12.46. Then again, Man proposes, God disposes. Despite the tailwinds, the big boys decided to pull the rug on OCBC share price.
For four consecutive weeks, OCBC has been in the top ten institutional net sell list. In the week of 26 July, big boys net sell $30.5 million worth of OCBC shares. In the week of 2 August, $52.8 million worth of OCBC shares were net sold. In the week of 9 August, $74.4 million of OCBC share were net sold. This is also the week that saw OCBC share price fell the steepest – from $12.46 to $11.90. In the week of 16 August, the selling continued, with $58.2 million shares being net sold.
The embattled OCBC share price triggered the management to embark on a series of share buybacks from 17 to 25 August. As of 25 August, a total of 11,883,100 of OCBC shares had been purchased from the market. In spite of the massive share buybacks, …Read more