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Latest 6 months T-bill auction had a cut-off yield of 3.99% per annum.
That is the good news.
The not so good news is that more people are now in the non-competitive bid camp.
Still, having 94% of my application filled is not too bad.
As the front end of the yield curve is still elevated, 6 months T-bills will remain rewarding.
This is especially when the banks have toned down in their fight for deposits.
The reason seems to be that the growth in loans has slowed while deposits have increased.
So, the banks don't need more deposits.
Given this situation, I could divert funds from maturing fixed deposits into T-bills in the coming weeks.
As for equities, I am still interested in adding to my investments in OCBC and UOB.
OCBC has broken its trend line support.
It could retest support at $12.00.
If $12.00 fails to hold, we could see supports at $11.50 or $11.00 a share tested in the coming months.
I hope I would have the funds to buy more in such instances.
As for UOB, it could test support at $27.00 and if that were to break, a much stronger support is at $26.00 a share.
Again, I hope to buy some at those levels.
If AK can talk to himself, so can you!
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16 comments:
Hi AK,
Hope your wish will come true for OCBC and UOB because it is my wish too! :D
Dear AK,
It's good to see that you are back! Got to keep going, that's life isn't it? Just want to let you know that you are such an inspiration to me. Ganbatte!
Hi keng,
Just reading the charts and talking to myself, as usual. ;)
I don't wish for stock prices to decline since I have significant investments in both OCBC and UOB.
However, I do wish that I have more money to buy if the stock prices do decline. ;p
Hi Ann,
I decided that very short blogs like this one won't be too demanding.
If talking to myself can inspire more people towards financial freedom, I am glad.
Thanks for letting me know. :)
Hi AK
I just started reading your articles and found it pretty insightful and not too complicated.
May I know if DBS goes under $30, would $29.94 be the next support for entry?
May I request when you have the time, if you can do a short write up on keppel corp, sembcorp industries and sgx? would love to get your thought on these companies.
thanks and stay strong.
CW
hmm, I favour uob more over ocbc because of uob's exposure to SEA growth. I also want to limit my exposure to china markets. buying into china has felt like catching a falling knife the past 2 years :/. What are you views on ocbc's china business AK?
Hi cw,
Welcome to my blog.
I don't think I am able to pinpoint the price to buy any stock.
The chart seems to suggest that if DBS were to break support at around $30, we could see $29.50 which seems to be a support level established in January 2022.
The last time I blogged about SembCorp Industries was in 2020.
SCI: Investment is larger now.
Unfortunately, my plate is rather full and I don't have the inclination to look at it, KepCorp or SGX now.
As for my position in SCI, it is a smallish investment and I am just holding for dividends.
AK is lazy. ;p
Hi zhenling,
China's economy is huge and I don't think it is going away anytime soon.
However, I must agree that investing in a business that has 100% exposure to China is pretty daunting now.
Having said this, although China is facing challenges, South East Asian countries have their own issues too.
I always say not to be too overly optimistic nor pessimistic but to stay pragmatic.
I would stay invested in both OCBC and UOB, knowing that I don't know everything.
However, I do know that both banks have strong fundamentals although they are different in some ways.
Of course, we have to invest in whatever we have confidence in.
AK is just talking to himself. :)
Hi Ak, stay strong and thanks for sharing with us your words of wisdom!
My initials stand for Nam Myoho Renge Kyo
Hi NMHRGY,
At one point or another, I might have wondered what your initials stood for?
Thanks for letting me know. :)
I had a friend who was a follower of the same school of Buddhism.
hi ak
tks for the advise. no worries. im not looking for an exact figure. just a zone.
for dbs, its jan 2022 prices are mostly above 30-ish while late jul 2022 prices would be the 29.5-ish. :). lets see where will it go after its aug quarterly financial results. btw, if US fed is going to keep increasing its rates in the near future, isn't it good news for dbs nim?
sci is a big winner with its ability to generate higher roe moving forward. it's probably in the mould of dbs - a defensive dbs.
cw
Hi cw,
Alamak. I was just talking to myself. No advice given. -.-"
The banks were able to increase their NIMs rapidly and significantly because the interest rate hikes were fast and furious in the USA.
This is unlikely to be repeated even with another couple of hikes later in the year.
Widely expected to be 0.25% hikes, they are likely to be less impactful in adding to the banks' bottom line.
Funding costs have caught up and loan growth has slowed significantly too.
Having said this, our local lenders should continue to do relatively well which is reason enough for me to increase exposure.
re Tbills, this means that those who put in competitive bids didn't get anything? since only 94% of non competitive bids got it?
Hi gagmewithaspoon,
With a cut-off yield of 3.99% per annum, those who made competitive bids of 4% or higher would not have gotten anything.
Ocbc was almost going under $12 then bounce....back to waiting again
Hi SgFire,
At $12 a share or a bit more, OCBC was also a pretty good buy.
Of course, if we are patient long term investors who already have exposure to OCBC, waiting to accumulate at $11.50 or $11 a share isn't a bad idea.
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