Month: February 2022

OCBC share price plunged into chaos

DBS share price

LIFETIME MEMBERSHIP What a bombshell revelation. On 23 February 2022, OCBC share price got ripped apart after the bank released its FY2021 financial result. It was supposed to be the day that investors pop the champagne. Instead, investors were horrified to see OCBC share price plunging by as much as 6% on that fateful day.

To rub salt into injury, OCBC share price bucked the trend of DBS and UOB shares, which increased on 23 February. This was the first time that DBS and UOB share prices rose while OCBC share price got bombed out. For years, these three counters had always moved in tandem. Evidently, investors ran for their lives, sending OCBC share price straight to the gallows.

OCBC share price

The subject of debate at here is: does the FY2021 result really justify the collapse of OCBC share price? Okay, the venerable bank missed the estimates of most analysts (including mine). But surely that doesn’t warrant the explosive meltdown of OCBC share price? We are talking about a financial institution that raked in higher net profit of $4.86 billion. If you claim that the bank suffered a financial loss over the year, I would have accepted the meltdown. But clearly, this is not the case.

In the stock market, sentiment plays an important role. The crisis of confidence in OCBC share price stemmed from several factors. Firstly, the invasion of Ukraine by Russia had rattled global stock market confidence on 24 February 2022. Global stock markets got routed and Straits Times Index fell 3.5% on that fateful day. OCBC share price was not spared from the carnage as the counter collapsed 4.5%.

In addition to the unfolding war, market reactions were adverse for OCBC share price following the release of FY2021 result, which saw net interest income dropping 2% year-on-year. …

AEM share price in perfect storm

AEM share price

LIFETIME MEMBERSHIP What a perfect storm for AEM share price. Investors must put on their seat belts and braced for a roller-coaster ride. Year-to-date, AEM share price tumbled 18.9% to reach the current $4.25. The collapse of AEM share price occurred right before the release of FY2021 financial result. Is this a sign of things to come for AEM share price?

Apparently, the cocktail of headwinds – the unfolding Ukraine-Russia conflict and looming interest rate hikes – had knocked the wind out of AEM’ sail. To rub salt into injury, the USD counter had received poor reception, effectively dashing hopes of a NASDAQ listing. The resulting outcome is a crisis of confidence for AEM share price.

AEM share price

For the past two weeks, data extracted from SGX portal showed that AEM had been on the top ten net sell institutional list. The week of 7 Feb 2022 saw the counter topping the list, with $22 million worth of shares being net sold by the big boys. It seems that big boys are fleeing the counter. This could explain the downward trend of AEM share price in recent weeks.

To be honest, it is hard to imagine Non-Executive Chairman Loke Wai San pulling another rabbit out of the hat. In August 2021, the management released a set of poor 1HFY2021 result at late night (10:48PM). Usually when a listed company announces its financial result at late night, it can only mean one thing – disappointing financial result. That night, many investors could not sleep well. Consequently, the next day, AEM shocked the market by announcing the entry of Temasek. This time round, let’s hope that the financial result will not be released late at night.

Apart from the FY2021 financial result, all eyes will be on the sales guidance, if any. On …

OCBC share price on fire!!!

OCBC share price

LIFETIME MEMBERSHIP What an explosive form! OCBC share price went on a rampage to hit a high of $13.50 (at the point of writing). On the basis of the current run, it appears to me that OCBC share price is on course to race past its previous record of $13.70 in April 2018.

To be sure, OCBC share price has not peaked. Both DBS and UOB share prices are now trading at all-time highs after announcing stellar financial results. OCBC Bank will release its FY2021 result on 23 February 2022. Barring unforeseen circumstances, I expect the result to be stellar like DBS and UOB. Thus, OCBC share price should continue its bull run in the next couple of weeks.

OCBC share price

The supersonic form of OCBC share price should be the work of the big boys. According to data extracted from SGX, institutional fund houses had been pouring funds into OCBC shares for the past two months. In fact, OCBC topped the list of institutional fund house net buys for five consecutive weeks! This is something unprecedented. The strong buying in from the big boys sent OCBC share price to the moon.

The presence of the big boys can be a double-edged sword. Whilst they can push up OCBC share price in a short span of time, they can also send the counter straight to the gallows. After all, the institutional investors are all in it to make money. It is only a matter of time that they cash out and profit from the volatility of OCBC share price. Hence, investors must be vigilant and be cautious – the run-up of OCBC share price may not be sustainable.

Admittedly, the recent Ukraine-Russia conflict had threatened to derail the form of OCBC share price. Market hates uncertainties. That’s why volatility will remain …

DBS share price to sink or swim with Ukraine war?

DBS share price

LIFETIME MEMBERSHIP Man proposes, God disposes. This Valentine Day was supposed to be the day that DBS share price rocketed to high heavens. However, the looming Ukraine war gate-crashed to spoil the party for investors, causing Dow Jones to fall 500 points on 11 February 2022. In the aftermath, DBS share price had a minor correction. Question now is: will the full-year financial result set DBS share price on fire and brush aside the uncertainties of a potential Ukraine war?

Russia could be launching an attack on Ukraine, possibly on this Wednesday. The conflict would surely lead to massive uncertainties for the global stock market. DBS, being the leading light of SGX, would not be spared from the market carnage. Certainly, the unfolding event is bad timing for DBS share price as the bank delivered a set of stellar financial result. In this respect, investors should expect much volatility for DBS share price in the coming days.

DBS share price

It remains to be seen if the Ukraine-Russia conflict could really escalate to a war, so it is still premature to claim that it is the end of the road for DBS share price. At the point of writing, it seems that the record earnings for DBS has boosted investors’ confidence, thereby providing a key support for DBS share price.

Again, I must stress that the current bull run of DBS share price may not be sustainable in the context of a looming Ukraine war. Investors must be wary of the changing macro conditions and do risk management before investing in DBS shares. At the moment, investors must be savouring the outcome of the full-year financial result for FY2021.

As expected, DBS announced a record earnings. Net profit amounted to a record $6.8 billion. The net profit is more or less in line …

DBS share price in Grand Slam Finale!

DBS share price

Chinese New Year Special Offer! DBS will release its full-year FY2021 financial result on 14 February 2022, before the market opens. When a listed company releases its financial result before market opens, it usually means one thing – the result should be good. In this regard, investors should expect plenty of fireworks for DBS share price.

DBS share price has been on a solid bull run for the past few weeks that not even the MAS’ regulatory action on its digital disruption in November 2021 could derail its bullish form. Year-to-date, DBS share had increased 13.6% to $37.25. With the stellar full-year financial result, it is not inconceivable that DBS share price would hit $50 in the coming weeks.

DBS share price

It has not been a bed of rose for investors as DBS share price had previously endured a torrid run in late 2021 following market’s reaction to a subpar 9MFY2021. Omicron had emerged out of nowhere to create much uncertainties for DBS share price. And with the occurrence of the online disruptions, we have the perfect storm for DBS share price.

Then again, no winter lasts forever. For DBS share price, this is no exception. Investors were relieved that MAS’ regulatory action requires DBS to set aside additional capital amounting to $930 million. The bank assures investors that it will have no impact on the dividend policy. To put the icing on the cake, the acquisition of Citibank Taiwan is expected to accelerate growth, adding at least $250 million of net profit per annum post-pandemic.

But the strongest catalyst for DBS share price should be the looming interest rate hikes by US Federal Reserve. On 27 January 2022, the US Federal Reserves indicated that the interest rate hikes will likely take place in March. The interest rate hikes will benefit …

OCBC share price to hit $19 by end 2022?

OCBC share price

Chinese New Year Special Offer! The incredible form of OCBC share price must have left investors in surreal. Many of them must be pinching themselves if the explosive form of OCBC share price is for real. After all, OCBC share price had been lagging behind DBS and UOB for a number of years.

On 8 February 2022, OCBC share price crossed the pivotal $13 mark to hit a high of $13.13. The last time that OCBC share price was trading at the $13 bandwidth was in May 2018. Back then, the implementation of the additional property cooling measures impacted the home loan market, causing local banks to suffer collateral damage. Not surprisingly, OCBC share price got bombed out during that period.

OCBC share price

Since then, OCBC share price had not recaptured the sizzling form of 2018 until in recent days. Luckily, the new property cooling measures unleashed in December 2021 did not affect OCBC share price because the tightening of LTV limit is applicable to only HDB housing loans. The revised LTV limit does not apply to loans granted by financial institutions, for which the LTV limit remains at 75%.

Looking back, the explosive bull run of OCBC share price from 2015 to 2018 was largely due to the nine US Federal Reserve interest rate hikes. During that period, the US Federal Reserve raised the interest rate to a high of 2.5% in December 2018. Will history repeat itself for OCBC share price?

In the aftermath of the Great Financial Crisis of 2008, the US Federal Reserve had kept interest rates effectively zero until 2015. Similarly, the Fed has kept interest rates effectively zero since the start of the pandemic. Nonetheless, on 27 January 2022, the US Federal Reserves indicated that the interest rate hikes will likely take place in March. The …

SIA share price (SGX: C6L) in baptism of fire!

SIA share price

Chinese New Year Special Offer! Will SIA share price (SGX: C6L) roar in the Year of the Tiger? In peace times, there are no dragons to slay. But this is not peace time we are talking now right now. As global economy emerges from the protracted pandemic crisis, what will the outlook be like for SIA share price in 2022?

SIA share price was actually cruising in 2021 until Delta and Omicron variants brought the counter to its knees in May and November respectively. In this respect, whether SIA share price will return to form in 2022 will depend a lot on the pandemic situation. On 4 February 2022, Singapore announced a whopping 13,208 COVID cases. The spike in cases may cause not just supply chain issue for Singapore, but also manpower disruptions for the national airline.

SIA share price

Just a caveat: it is still premature to claim that the latest infection wave would disrupt SIA’s operation and puncture the form of SIA share price in the process. Given that the 4 February report was released after market closed, it is an unknown how the stock market will react when it reopens on 7 February. Due to the countless twists and turns of the pandemic saga, analysing the outlook of SIA share price is always a tricky business.

SIA share price so bad its good!

SIA share price in explosive form

SIA share price (SGX: C6L) faces ambush from another cash call?

SIA share price rises from ashes

The latest development takes place at a very bad timing for SIA share price as the company is expected to post a strong operating result for third quarter business update. The result should be stellar as December operating results were solid. For that month, SIA carried 596,300 passengers (2020: 85,200) while SIA Cargo carried …

iFAST share price crashed into sea

iFAST share price

Chinese New Year Special Offer! The wheels finally came off the wagon for iFAST share price. From nearly $10 in October 2021, iFAST share price plunged 38.7% within three months to reach the current $6.10. Year-to-date, iFAST share price corrected 26%. The devastating meltdown of iFAST share price caught many investors by surprise, not least due to a confluence of factors. One of my Lifetime Members reached out to me and sought my insights.

My last article on this counter was a year ago – 25 January 2021. Back then, iFAST share price was trading at around $5.20 and I had warned that there was tell-tale sign of a massive bubble building up. My opinion was that retail investors should be cautious of being caught with their pants down when the tide turned against them. In 2021 alone, volatility of iFAST share price had attracted three SGX queries. Despite so, iFAST share price went on to confound investors to hit almost $10 in October 2021.

iFAST share price

For investors who had exited at $10 and made a killing from iFAST shares, they must be laughing all the way to the bank. For those who had entered when iFAST share price was trading nearly $10, should they run for their lives or be the last man standing? This is a tricky question because it is certainly not the end of the road for iFAST share price. In this article, I will provide a balance analysis on the outlook of iFAST share price in the coming months.

Like many other growth stocks in SGX mainboard (Nanofilm and AEM Holdings), iFAST is not for the faint-hearted. News of the impending US Federal Reserves interest rate hikes had hammered these stocks left, right and centre. Year-to-date, Nanofilm share price dropped 25% while AEM’s declined 12.4%.…