As we approach the end of the year, it is time to review the performance of Singtel share price. Year-to-date, Singtel share price rose by 10.30%. Whilst the increase was decent, the stock should have performed even better, if not for the prevailing bearish market sentiments. In fact, the stock was actually on a bullish form in the earlier part of the year, surging from $2.30 in January 2022 to a high of $2.80 in May 2022. Then the series of US Fed interest rates came along to douse the bullish form of Singtel share price.
Indeed, the series of interest rate hikes had rattled global stock markets. Singtel share price was not spared from the turbulence. From May to October 2022, Singtel share price had been in bearish form in the aftermath of the interest rate hikes. Despite so, my observation is that $2.60 is the support level for Singtel share price. Each time this level is reached, Singtel share price will somehow rebound.
It seems that Singtel share price enjoyed the support from institutional investors. In 2022, the counter was often ranked in the monthly Top Ten Institutional Net Buy Lists except for the months of June, May, March and January (December result is not compiled yet). Looking at the data, it seems that the main bulk of the buying in from institutional investors occurred in the latter half of the year as Singapore eased its COVID-19 restrictions and lifted the borders’ restrictions.
Looking back, the recovery of Singtel share price gained much momentum in early 2022 as the Group CEO Yuen Kuan Moon continued to execute his three growth pivots for Singtel – harnessing 5G potential use cases, repositioning NCS for overseas ICT expansion and unlocking value from infrastructure assets. With the new CEO and the recent execution of his strategic plan, I do think that the current Singtel share price is the right entry price.
On 10 November 2022, Singtel share price suddenly roared back alive with the announcement of a special dividend per share of 5.0 cents in two tranches of 2.5 cents. The special dividend was approved to share the benefits of the Group’s asset recycling initiatives with shareholders. Despite the good news, some disturbing data emerged out of the 1HFY2023 that investors may want to take note.
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 Singtel before. Whether Singtel 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.
Singtel share price swim or sink in 2023?
With pandemic fading into a distant memory, the market is now confronting two major challenges – the fallout from surging interest rate hikes and the Russian-Ukraine conflict. Although I do not expect the Russian-Ukraine war to have a major impact on Singtel share price, the rising interest rates may throw a spanner in the works for the Group. This is because the rising interest rates could cause significant volatility to the currency exchanges.
In 1HFY2023, Singtel stunned investors when it reported staggering losses of nearly [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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