Singtel has had a bumpy year yet again, sure enough it has gained back some investors’ confidence. From the low of 2.83, Singtel has recovered to a resilient point of 3.20 to 3.30 for the past 2 months. Recent news about Singtel’s subsidiaries Airtel (India) and AIS (Thailand) has not to push Singtel back into the red. The best reason for this is that the Wuhan virus did not affect Singtel as its services are not going to be affected by the outbreak. However, with its price locked between the range of 3.20 to 3.30, has it reached a point of a trend reversal?
Weekly Chart Outlook
Looking at Singtel from a bird’s eye view from 2016 shows that Singtel is still in a stage of consolidation. Part of the reason stems also from its high payout ratio, reducing Capex for newer innovations. Even though Singtel had a “bailout” from AIG and Temasek for its Q3 net loss of 668B due to Airtel, it has not recovered much. This means that investors are also wary about its full-year reporting and performance.
While this is not confirmed, MACD does point to the direction of a potential trend reversal for Singtel. It might be a temporal issue due to the dips of STI but investors should stay on the cautious side until more info from full-year reporting is available.
Author Call as of 4 Feb 2020
- Hold until Full year earnings are released
- Currently MACD showing signs of trend reversal on weekly chart
- Next support level at 3.17 (might not hold if net profit drops significantly)
- Currently showing resilience because business is not affected by Wuhan virus
Author Call as of 14 Dec
- Hold until after Ex-dividend on 18 Dec
- Price unlikely surpass 3.44 although might be testing 3.44 in the coming week
- Support at 3.2 likely to hold for Singtel after Ex-Div
- Maintain Sell for those who have earn more than 6.8 cents after commissions
