DBS share price poised for explosive come-back?

For many Singaporean investors, the New Year resolution must be to avoid losses in the stock market at all costs. Indeed, 2018 had been a terrifying year as numerous blue chips got thumped. DBS share price is no exception. Being one of the leading lights of Straits Times Index (STI), DBS endured a challenging year which saw new property cooling measures and global trade tensions roiling DBS share price.

On a brighter note, 2018 had been a milestone year for DBS as the bank celebrated its 50^th anniversary. To put the icing on the cake, DBS had a better-than-expected financial results in 2018 as it emerged victorious from a devastating war against toxic loans farmed to the ailing oil and gas industry. On the basis of the 9MFY2018 results, full year net profit is very likely to exceed that of FY2017. Thus there is a strong possibility of DBS share price staging a magnificent come-back in the coming weeks.

DBS share price pulled back

Obviously, many investors would complain that DBS share price dropped like flies from a record high of $31 in April 2018 to the current low of $23.75. But if you look back, DBS share price was traded at $26 mark in January 2018. So on a year-to-date basis, the decline in DBS share price is not that bad. At least not on the scale of a horrifying train-wreck.

Nonetheless, many investors would be scratching their head  as the correction in DBS share price came on the back of a fantastic third quarter financial results, which saw net profit sky-rocketing to $1.4 billion, an increase of a staggering 72% year-on-year.

The plausible explanation for DBS share price volatility is due to two major factors – DBS management’s shares buybacks and short-selling by the big boys. Investors must be aware of the situation to avoid being caught in the cross-fire. My opinion is that this counter is always good to invest, but not ideal to invest and hold. Due to the volatility of bank stocks, the key to making money out of DBS stock is to set appropriate entry and exit strategies.

In this article, I will share with readers the key data driving the big boys’ movements and how they combined to shape DBS share price in the latter half of 2018. I will also explain why DBS share price is poised for an explosive surge in 2019, based on its solid business fundamentals.

Return-on-Equity (ROE) at turning point

Part of the reason for the resiliency of DBS share price is because of [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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