DBS stock rallied on issuing of $1billion perpetual securities
It is the return of DBS stock. On 21 September 2018, DBS stock surged to a month’s high to reach $26. The performance of DBS stock is remarkable, given that the counter rose by 7% within 10 days. The rally followed the recent issuance of $1billion perpetual securities.
While DBS stock is still some way off the record high of $31 seen on 31 April 2018, recent data suggested that DBS stock may have been oversold. It is still to early to suggest that DBS stock price is poised for another run but recent recovery was supported by several factors.
As the bellwether of the economy, DBS stock price is obviously very volatile and sensitive to market conditions. Thus, I view DBS stock more of a growth stock instead of looking at it from a dividend stock perspective. In this regard, my opinion is that this counter is good to invest, but not ideal to invest and hold. Due to the volatility of bank stocks, the key to making money out of DBS stock is to set appropriate entry and exit strategies.
Then again, there are many critics who may argue that I should not advocate short-term investing …
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