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vodafone losses break record ??
todat's movement a bit irrational ?
i dont think singtel is oversold yet. just a few mths back it was going for 2.51. so the downtrend is not going off any soon. i think the growth story is not going to be interesting enough to fuel interest the next 1-2 mths which from look of the market weakness to make any difference before it pays its dividend and buyback. My guess, it may just hit 2.5 or lower in the next 2 -3 weeks.
share buy back also cannot help shre price today ???!!!
good for making coffee money, range 2.60 to 2.70.
Up 5c after Morgan Stanley upgraded its target price from $2.95 to $3.10.
Institutional investors ("Big Funds"), depending on their relevant fund strategy / policies, are constrained to do purchases or sales at certain time frames / intervals. The selldown you saw on "Black Monday" would most likely still have made quite a bundle for the big funds since their cost per share would have been "dollar-averaged" lower than the current price (ie, the big funds purchased it at a lower price a long time ago). Besides, the managers also want their paychecks and bonuses (at the expense of the funds investor, of course). Today (17 May 2005) you see the "buyback" by institutions to start a "new cycle / term". The selldowns by big funds almost always create more potential for upside, and definitely SingTel has more "spring" upside now. Just my (not even worth 2 cents) opinion.
hi there whenissued,
do you know why the huge selling off by the big funds?
SingTel in general was sold down by big funds on the Singapore version of Black Monday. Retail investors were gobbling up bits and pieces whenever there was a large chunk hurled down at at a lower ("cheaper") price by the big funds. Just my (not even worth 2 cents) observation.
Singtel fell to $2.59 on further talks of hedge fund sales. There was a married trade of 24.2m sales at $2.693, further to the persistent concern of delta hedging ahead of the expiration of covered warrants this month.
From the Accumulation and Distribution chart and the RSI, it seems that Singtel is on a strong downtrend for the next week or so. However, its also very oversold now.