DBS share price (SGX: D05) on the way to $50?

Chinese New Year Special Offer! What a roller-coaster ride for investors! This year’s November was one of the most terrifying months in recent years for DBS Bank as it endured market’s reaction to a subpar 9MFY2021 financial result and suffered one of the worst service disruptions in the past decade. Adding the emergence of Omicron variant, we have the perfect storm for DBS share price. But as we approach 2022, DBS share price is poised for an explosive bull run that could see the counter smashing the pivotal $50 mark.

DBS share price

Year-to-date, DBS share price surged 28%. In fact, the majestic run of DBS share price saw the counter hitting a record high of $32.60 on 8 November. However, the wheels came off the wagon after the bank reported a disappointing 9MFY2021 financial result that saw net income interest falling 9% year-on-year. The following Monday (8 November), DBS share price turned bearish.

Suffice to say, the much-publicised outage of DBS online services further dented investors’ confidence on DBS share price. And then Omicron variant arrived to cause DBS share price to plunge to a low of $30 on 30 November. Looking at the data extracted from SGX, it is evident that the massive correction of DBS share price was largely due to short-selling activities. Analysing the short selling activities could provide vital clue on the projection of DBS share price in the coming months.

DateShort sale volumeShort sale value
26 November468900$14.8 million
29 November1.5 million$45 million
30 November1.2 million$37 million
1 December877900$27 million
2 December769400$24 million
3 December873078$27 million
16 December964600$31 million
17 December1.33 million$43 million
20 December1.75 million$56 million
21 December621629$20 million
22 December748700$24 million

Source: SGX

Looking at the above data, we can see that short selling volume reached a high of 1.5 million on 29 November (1.5 million) and then 30 November (1.2 million). The short sellers caused DBS share price to fell to $30 on 30 November. The rationale for short sellers to short DBS share price was due to the uncertainties of Omicron variant. Back then, the lack of data on this variant led to fears of another wave of infections.

The next wave of short selling activities took place on 17 December (1.33 million) and 20 December (1.75 million). That was when news emerged of Omicron variant cases raging in the US, causing the US stock market to fall. Under normal circumstances, DBS share price should have succumbed to events unfolding in US market. However, the downside was mitigated as institutional investors went on a rampage to buy DBS shares. For three consecutive weeks in late November to December, DBS was the top institution net buy list. The support from the big boys provided support for DBS share price.

Source: SGX

Going forward, what is the outlook for DBS share price and why is institutional funds so bullish on this counter. In this article, I will share with readers on the key catalysts that could propel DBS share price to the $50 in 2022.

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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 share before. Whether DBS 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.

BullionStarDBS share price shrugged off property cooling measures

The buoyant DBS share price appears to shrug off the impact from the recent property cooling measures. The situation contrasts greatly with the 2018’s property cooling measures, which saw Additional Buyer Stamp Duty (ABSD) for second properties being increased from 7% to 12% and Loan-to-Value (LTV) limit tightened by 5%. Back then, DBS share price crashed from $30 to a low of $23.10 in November 2018. However, the recent cooling measures did not appear to wallop DBS share price as much as it did in 2018. Why is this so?

For the 2021 property cooling measures, the LTV limit for HDB housing loans will be [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.]

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Updated: December 24, 2021 — 10:06 pm

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