Will CEO Piyush Gupta come to the rescue of DBS Group Holdings share price? During the 2014 oil crisis, DBS Group Holdings share price had collapsed 36% to reach a bottom of $13.60. In 2016, CEO Piyush Gupta had bought the company shares at around the price range of $13.90. From the day he bought DBS shares, this counter went on a rampage to hit a record $30 in April 2018.
The entry of Piyush Gupta would provide the perfect buying signal for DBS Group Holdings share price. But the current crisis is entirely different as COVID-19 pandemic presents a formidable challenge. To make things even more complicated for DBS Group Holdings share price, the banking sector is hit by a slew of Monetary Authority of Singapore (MAS) measures.
On 18 July 2020, I wrote an article on DBS Group Holdings share price stating that the counter would hover between $21 and $23. I even commented that DBS Group Holdings share price is unlikely to drop below the $20 support level. It turns out that my analysis has been upended by MAS.
On 29 July 2020, the MAS dropped the bombshell of capping banks’ dividends for FY2020 at 60% of last year. That announcement really knocked the wind out of DBS Group Holdings share price, which dropped to the level below $20 for the whole of last week. The bearish form of DBS Group Holdings share price was due to fund houses fleeing from this counter.
In the week of 27 July, DBS Group Holdings topped the net sell stocks by institutions ($57.6 million). In the week of 20 July, this stock was also the top net sell counter by institutions ($90.8 million). Based on the data, the big boys were responsible for the correction in DBS Group Holdings share price. Presumably, they were being spooked by the pre-emptive measures implemented by MAS. In this article, I will share my insights on the outlook of DBS Group Holdings share price.
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 Holdings share before. Whether DBS Group Holdings 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 price braces for lost decade
The July measure implemented by MAS came on the back of April measures which saw MAS loosening capital and liquidity requirements for banks. In exchange, banks are not to do share buybacks. From the perspective of DBS investors, these measures [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.]Sign up & unlock articles!
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