In today’s briefing:
- SEA 110/102 Buy Zone
- Oversea Chinese Banking Corp.- Another Weak Print
SEA 110/102 Buy Zone
- SEA has undergone a severe decline but is showing some light at the end of the falling wedge tunnel with physical support approaching near the 110/102 zone.
- RSI compelling bull divergence stands out as the upside energy driver. Align a buy entry with noted support at the 20-25 level that should nail down divergence.
- 170 is our initial recovery target if the 100 level holds.
Oversea Chinese Banking Corp.- Another Weak Print
- OCBC reported 4Q21 net profit of SGD 973 mn, declining 20.5% linked quarter, as a result of an increase in loss provisions and higher costs;
- Were it not for the 51.8% decline in Singapore NPLs, credit quality would have been disastrous for OCBC with credit falling off of a cliff regionally; and
- Given the increase in net new NPLs, reserves would appear to now be wanting by SGD 2.8 bn plus or nearly three quarters of bottom-line results.
Before it’s here, it’s on Smartkarma
