UOB share price given booster shot!
Chinese New Year Special Offer! It appears to me that UOB share price is on fire after being given a booster shot! Lately, Singapore bank stocks were given a lift following news of the impending interest rate hikes by US Federal Reserves. However, UOB share price jumped to a whole new level following the announcement of the $5 billion acquisition of Citigroup’s Southeast Asia consumer business.
The Citigroup acquisition pushed UOB share price briefly passed the psychological $30 mark. This is a record level for UOB share price. Whether UOB share price can sustain this level remains to be seen in the coming days. Nonetheless, I doubt that UOB share price has peaked as the full-year financial result will be released only on 16 February. Given the lower allowances being made in FY2021, we should see full-year net profit registering a double-digit growth. In view of this, there should be plenty of headroom for UOB share price to rise in the next few weeks.
From a long-term perspective, the recent Citigroup acquisition is an interesting deal that could possibly shape the dynamics between the Singapore banking trio. Notably, this deal marked the first overseas acquisition under the helm …