Keppel share price to soar with potential demergers?

The only predictable thing about Keppel share price is its unpredictability. In this regard, will 2021 herald a new era or yet another false dawn for Keppel share price? Looking back, it has been an absolute gut-wrenching ride for investors as Keppel share price undergo tremendous volatility in 2020.

The counter plunged to $4.90 on 19 March when global stock markets blew up in pieces during the outbreak of COVID-19 pandemic. Consequently, all hell broke loose for Keppel share price as the blue chip was not spared from the terrifying carnage.

Keppel share price

The resulting COVID-19 pandemic had led to oil prices collapsing to negative levels in May 2020. Nonetheless, Keppel share price confounded analysts to stage a swift recovery from the meltdown to hit a high of $6.00. Unfortunately, that impressive run was soon brought to an unexpected halt when Temasek Holdings pulled out of the conditional offer to buy a controlling stake in Keppel Corp.

Keppel share price plunged to 11 year low

Keppel share price in winter wonderland with Temasek Holdings

Can Keppel share price meet the great expectations of Temasek Holdings?

Indeed, the stunning move by Temasek Holdings had briefly caused a crisis of confidence on Keppel share price as the counter sunk to an 11-year low. The last time that Keppel share price was trading at $4.00 bandwidth was during the Global Financial Crisis in 2009. Keppel share price never really recovered from that knock-out blow as the stock did not touch the $6.00 bandwidth since then.

For sure, the Temasek saga have caused a serious dent in Keppel share price but the Group went on a charm offensive to woo back investors with its reaffirmation of Vision 2030 in September and then a surprise announcement of leadership renewal for key business units in November. Whether these gimmicks will help to revive Keppel share price in the long-run is a big question mark but will Keppel demerge its profit-making assets like what Sembcorp Industries did?

The demerger of Sembcorp Industries and Sembcorp Marine had led to the former’s stock price becoming the best performing counter in Straits Times Index (STI) in 2020. In this article, I will share my insights on Keppel share price in the coming new year.

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 Keppel Corp before. Whether Keppel 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.

Keppel share price at cross-roads

Vision 2030 and the leadership renewal had reignited hope among investors of Temasek Holdings making another partial controlling bid for Keppel. As a result, Keppel share price climbed to $5.40 mark in recent days. In my previous article, I had predicted that Keppel share price could correct to $3.50 in 2020. I am pretty convinced that price level could have been breached if it’s not for Vision 2030 and the leadership renewal announcement. These moves helped to restore confidence in Keppel stock once again.

The deal from Temasek will definitely [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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Updated: December 28, 2020 — 7:45 am

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