2020 will go down in history as one of the most terrifying years for investors as the stock markets plunged into total chaos amid the coronavirus outbreak. DBS is the largest lender in Singapore, so investors will always examine DBS Group Holdings share price to gauge the health of the economy. But question now is: will the second stimulus package from Singapore government be timely enough to salvage the situation?
At the point of writing (12 March 2020), DBS Group Holdings share price had tumbled 23%, much higher than the 17% correction for OCBC share price. The huge correction of DBS Group Holdings provided clear signal that recession should be on the way for Singapore.
But of more chilling revelation is the stunning oil price war. As the biggest lender in Singapore, DBS bank has substantial exposure to the oil and gas sector. Due to this, DBS Group Holdings share price had plunged from a high of $21 in 2015 to an abysmal low of $13 in 2016, the peak of the oil slump.
Certainly, the operating climate had turned massively dark and sombre as World Health Organization finally declared coronavirus as pandemic on 12 March 2020. On the same day, US President Donald Trump announced travel suspension from Europe (with exception of United Kingdom). Given the rapid development of events, many people had appeared to underestimate the devastating effects of the virus. How will DBS Group Holdings share navigate through this perfect storm?
The “feel good” factor due to the stellar full-year FY2019 had evaporated in a matter of week as DBS Group Holdings share price hit the skid. The bank is facing three main headwinds currently: coronavirus slowing down Singapore economy and disrupting supply chain; oil price war causing non-performing assets to balloon again in the oil and gas sector and the plummet in interest rate squeezing net interest margin.
Amid the market turbulence, DBS Group Holdings share price is also facing much volatility due to the big boy’s movements. In this article, I will highlight the impact of the institutional fund flows and the short-selling activities. Remember to subscribe to unlock the full article!
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 Group share before. Whether DBS Group 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.
DBS Group Holdings share gripped by maximum fear
The market is gripped with maximum fear. When you have this sort of fear, buying into dips may be too premature. To be honest, it takes an incredibly optimistic investor to buy in now and believes a turnaround is on the card. In my view, the bloodbath for DBS Group Holdings share is still not over due to the prevalence of market pessimism. And it is not just the retail investors who are running for their lives. The big boys are also fleeing DBS Group Holdings share.
In the week of 2 March 2020, major institutional players sent DBS Group Holdings share into [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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