Month: April 2020

DBS Group Holdings share in bloodbath with Hin Leong

DBS Group Holdings share price

In March 2020, DBS announced a staggering pay check of $12.1 million to CEO Piyush Gupta for leading the bank to the Promised Land – DBS’ total income had more than doubled, net profit has tripled, and market capitalisation had nearly doubled in FY2019. However, almost half of his annual salary was in the form of the company’s share plan. Thus, the upheaval of DBS Group Holdings share price in recent months must have left a bitter taste in CEO Piyush Gupta’s mouth.

DBS Group Holdings share in explosive meltdown

DBS Group share price in dark chapter with virus

DBS Group Holdings share price ambushed by coronavirus?

Previously, the supreme form of DBS Group Holdings share price was largely due its strong financial results, which was fuelled by its aggressive loan growth strategy. With $362 billion gross loans, DBS is the largest lender in Singapore. In comparison, UOB holds $269 billion while OCBC holds $264 billion of loans.

DBS Group Holdings share price

For sure, CEO Piyush likes to put his money where his mouth is. In 2016, he bought $2.8 million of DBS shares at the peak of the oil crisis. At that point of time, he was confident …

UOB share price exploded with Hin Leong

UOB share price

Troubles certainly come in troops for UOB share price. Amid the devastating fallout from COVID-19, UOB share price slipped following news that DBS, OCBC and UOB were faced with $870 million loan exposure to embattled home-grown oil trader, Hin Leong.

UOB share price hammered by coronavirus

UOB share price in royal rumble with DBS and OCBC

UOB share price fought back after bizarre plunge

UOB share price

The fall of Hin Leong cannot be underestimated as it is one of the largest marine fuel suppliers in Singapore. It also came at a time when global crude oil was trading at negative prices due to oversupply issue and price war between Saudi Arabia and Russia. Oil crisis is certainly not a new risk for local banks. In the 2014’s oil crisis, UOB share price got hammered as well, falling from $24 in May 2015 to the abysmal low of $17 in February 2016. But this time round, things may not be so straightforward for UOB share price.

To be honest, I have never seen such great chaos in my life. The pandemic crisis had effectively brought global economy to a complete standstill. And now with this oil crisis unfolding, …

Earn 2.8% interest from SGX Securities Borrowing and Lending (SBL) program

SBL

COVID-19 has ravaged the entire global financial markets and upended numerous industries. To tackle the massive fallouts, US Federal Reserve pull out all stops to contain the explosive impacts of this unprecedented black swan event in modern days.  Arising from this interest rates has plummeted to abysmal levels yet again, leading to “cash is trash”. Against such backdrop, the interest rate of SGX Securities Borrowing and Lending (SBL) program could be lucrative.

How does SGX Securities Borrowing and Lending (SBL) work? In Singapore, investors can either lend their existing shares to brokerage firms or SGX. By lending out shares, they can earn interest fees. Conversely, investors can also borrow shares to do short-selling. In the course of doing so, you need to pay borrowing fees.

SBL

In this article, I will provide my insights on the pros and cons of lending shares to SGX Securities Borrowing and Lending (SBL) program. Something that needs to be highlighted is that this article will touch on only the lending program of SBL. As I am not into short-selling activities, the borrowing facility of the SBL is not covered in this article.

Disclaimer for this article: SGX did not …

SIA share price in darkest chapter

SIA share price

It is a battle that SIA cannot afford to lose. Currently, SIA share price is fighting for its life as COVID-19 completely razed air travel to the ground. With numerous airlines expected to file for bankruptcies in the coming months, many analysts claim that the aviation sector may never recover to the pre-crisis level. This is indeed the darkest chapter for SIA share price.

SIA share price faces brutal meltdown

SIA share price to rock or melt with Special Share?

SIA share price crashed into wall

SIA share price nearing 20-year low

SIA share price in crisis mode

SIA share price

For sure, the coming announcement of the full-year financial result and the mega rights issue will be a massive baptism of fire for SIA share price. Indeed, the next two weeks will be critical as the national carrier navigates through this crazy storm. In view of this, expect plenty of volatility for SIA share price.

The current crisis completely dwarfed previous crises such as the Asian Financial Crisis of 1998, the dotcom bust in 2000, 9/11 terrorist attacks of 2001, the SARS of 2003 and Great Financial Crisis of 2008. In each of those crises, SIA share …

OCBC share price in explosive free fall

OCBC share price

What a roller coaster ride for investors! COVID-19 pandemic crisis had ignited one of the biggest equity sell-offs in modern history as investors fled for their lives. The Straits Times Index (STI) plunged by a terrifying 17% to reach the abysmal level of 2,208, a level last seen in June 2009. Being one of the leading lights of STI, OCBC share price was not spared from the carnage.

OCBC share price in devastating bloodbath

OCBC share price to increase three-fold in decade?

OCBC share price led to my first investment in decade

OCBC share price

But what made this crisis so extra-ordinary is that it coincided with the oil slump. It is reported that OCBC, DBS and UOB collectively faced with loan exposure of $600 million to embattled oil trader, Hin Leong Trading. As a result, OCBC share price took a beating in recent days. As the double whammy crises unfold, expect plenty of volatility for OCBC share price.

Since 23 March 2020, OCBC share price had recovered from a low of $7.80 to reach the current $8.80 level. The recovery was due to improved market sentiments following the massive US’ two trillion dollar stimulus package. Nevertheless, I …

KIT share price to fight to the end

KIT share price

Note: This article has been edited to incorporate clarifications from KIT.

Will Singapore’s largest infrastructure business trust, Keppel Infrastructure Trust (KIT share price), be the last man standing? Amid the violent upheaval in the stock market, it seems that KIT share price will fight to the very end.

On 10 March 2020, I wrote that KIT share price would be stung by the collapse of the oil price. Indeed, the following day, KIT share price collapsed from $0.51 to reach a crazy low of $0.36 on 19 March 2020. The meltdown prompted the management to conduct shares buyback to halt the collapse of KIT share price. By 3 April 2020, 4.75 million of KIT shares had been repurchased.

KIT share price safe haven from virus?

KIT share price to suffer same fate as Hyflux?

KIT share price

Previously, I have pointed out that KIT share price has a strong correlation with oil price because it owns one power-plant, Keppel Merlimau Cogen (KMC) Plant, which has been making huge losses since the start of the oil slump in 2014. For full-year 2019, losses before tax for KMC amounted to $40 million, an increase from $33.6 million in last year.…

Lippo Malls share price collapsed after SGX queries

Lippo Malls share price

The unfolding COVID-19 has claimed the first S-Reit casualty in Eagle Hospitality Trust. Which will be the next one? In view of the plunging Lippo Malls share price over the course of last month, investors must be living in fear. Looking back, Lippo Malls share price was actually cruising along finely in 2019 with the strengthening of Indonesian rupiah until COVID-19 came along to mess things up.

Year-to-date, Lippo Malls share price plummeted by a whopping 52%, making it one of the worst SGX stocks to own. Apart from COVID-19, what could be the other dark forces behind the meltdown of Lippo Malls share price? In my view, besides macro factors, it is also important to pay attention to the business fundamentals because that will shape Lippo Malls share price even in the midst of market chaos.

Lippo Malls share price

Temasek Holdings lost its pants in Lippo Malls Indonesia Retail Trust?

Lippo Malls Indonesia Retail Trust in dark chapter

Nightmare of Lippo Malls Retail Trust

With effect from 1 April 2020, all of LMIR Trust’s portfolio of 23 retail malls and seven retail spaces will be temporarily closed except for essential services. The period of closure will …

SIAEC share price plunged into hell

SIAEC share price

It seems that hell has a special place for SIAEC share price. The coronavirus outbreak imploded out of nowhere to cause the entire aviation industry to come to a grinding halt, leading global airlines to ground their fleets. The latest government order to close down workplaces (except for essential services) in Singapore will further roil SIAEC share price to no end.

SIAEC share price and ST Engineering in bizarre tale

SIAEC share price in bloodbath with Temasek Holdings

SIAEC share price

Year-to-date, SIAEC share price plunged by a staggering 44%. This made SIAEC share price one of the biggest falling stars among the SGX shares. Against this backdrop, investors must be having plenty of sleepless nights and wonder if SIAEC share price will recover from this nightmarish run. The coming full-year financial result will be a litmus test for SIAEC share price as the MRO stalwart navigates through this dark chapter of aviation.

The grounding of aircraft among global airlines will hurt SIAEC’s MRO business and dented SIAEC share price. From a technical point of view, when an aircraft is grounded, a large portion of the maintenance works which are based on interval of flight hours or flight …

SGX share price generated 588% returns!

AEM share price

Crisis? What crisis? SGX share price laughed off talks of impending recession as it turned bullish amid the ongoing virus outbreak. Traditionally, SGX share price is not a safe haven against crises but volatility in the stock market is good for stock market operators like SGX because of the increased in revenue from clearing fees.

In fact, if you purchased 1000 shares of SGX shares in November 2000 and held it till now, the returns would be an incredible 588% based on current SGX share price of $9.22. I don’t know which stock that had generated so much returns for investors and is not affected by the current coronavirus.

Even more bizarrely, SGX share price actually benefitted from the ongoing crisis as market turnover for equities and exchange-traded funds jumped 44% and 245% respectively in February. The market volatility also saw increased interest in daily leverage certificates and structured warrants. The number of monthly active participants climbed 55% year-on-year, while the outstanding value of leveraged products held surged three-fold.

SGX share price in sparkling form after reporting highest profit in 11 years

Bonds to the rescue for SGX share price

Indeed, coronavirus had destroyed thousands …

SIA share price faces brutal meltdown

SIA share price

Is the worst over for SIA share price? In all honesty, I don’t know. At this point of writing, the number of people infected by COVID-19 stood at 784,000 and number of deaths amounted to 38,000. The epic USD2 trillion stimulus package by US government had provided some boost to the stock market. But whether this is a sustainable run or just a bull trap remains to be seen. In this regard, is this a false dawn for SIA share price?

SIA share price to rock or melt with Special Share?

SIA share price crashed into wall

SIA share price nearing 20-year low

SIA share price in crisis mode

SIA share price

Indeed, the devastating COVID-19 has brought the entire aviation industry to its knee and roiled SIA share price to no end. With border controls tightening around the whole world, the national carrier is forced to cut its flight capacity by a staggering 96%. In the early days, I predicted a V-shape recovery for SIA share price using 2003 SARS as point of reference. But it seems that I had grossly underestimated the impact of COVID-19.

With so many aircraft grounded, the airline could be facing cash …