Lifetime Membership As we approach the end of 2022, it is time to review the performance of Wilmar share price. From a decade high of $5.60 in February 2021, Wilmar share price fell from the sky and lost its way. Looking back, the explosive form of Wilmar share price was largely due to the listing of its subsidiary, Yihai Kerry Arawana (YKA). Nonetheless, that form did not last somehow as the counter collapsed to $4.15 toward the end of 2021. What has gone wrong for this leading light of Straits Times Index (STI)?
To add to the intrigue, the implosion of Ukraine-Russia war in early 2022 led to a commodity boom. The unfolding event saw Wilmar share price recovering its form as the stock rose to a high of $4.90 in March 2022. Then again, Man proposes, God disposes. The month of March 2022 coincided with US Federal Reserve launching a series of interest rate hikes. Consequently, all hell broke loose for Wilmar share price. The roller coaster form of Wilmar share price must be gut-wrenching for investors.
In 2020, I invested in Wilmar and exited at a profit of $2,700 in early 2021. My lowest entry of Wilmar share price was $4.84 and I exited at $5.20. While I did not exit at the highest point of $5.60, I have no regrets selling my Wilmar stocks. In life, you can never sell at the highest price. I am happy as long as I made decent profits. Despite so, I would caution that due to the volatility of Wilmar share price, this stock is really not for the faint-hearted.
The volatility of Wilmar share price must be puzzling, if not disturbing, for many investors. After all, the Group achieved its third consecutive record quarter results in 2022, with core net profit for the quarter surging by 38.2% to US$796.7 million (3Q2021: US$576.4 million). By logic, the superb financial results should have sent Wilmar share price to high heavens.
Further, the Group continued its aggressive shares buybacks in 2022. A total of 66,608,400 shares had been acquired from the market as at 28 September 2022. The Chairman and CEO, Mr Kuok Khoon Hong had been buying the company shares too. As at 8 December, Mr Kuok held 818,384,935 of Wilmar shares. Based on these factors, Wilmar share price should be on a bullish run in 2022. Yet, the counter had been in disappointing form throughout the year.
In my opinion, the reason for the loss of form for Wilmar share price should be attributed to institutional investors giving the counter the cold shoulder. In February and March 2022, the strong buying in from institutional investors had sent Wilmar to the Top Ten Institutional Net Buy Lists. Since the Fed started its first interest rate hike in March 2022, Wilmar had not featured in the list till now. Apparently, a key financial data in the 2H financial result vindicated the big boys’ moves. In this article, I will share the outlook of Wilmar share price in 2023.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. As of now, I am not vested in this counter. In view of the volatility of Wilmar share price, investors must exercise caution in trading this counter.
Wilmar share price braced for meltdown in 2023?
As a global commodity firm listed in SGX, Wilmar reports its financial result in US dollar. With rising interest rates, the US dollar has surged significantly in 2022. Due to this, investors must be horrified to learn that the Group incurred [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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