DBS Group Holdings Ltd (SGX:D05) Goes Digital

DBS Group Holdings Ltd (SGX:D05) Goes Digital

DBS Group Holdings Ltd (SGX:D05) Goes Digital

  • In August, DBS took its latest step in digital banking with the launch of its mobile-led digibank business in Indonesia. Like its landmark offering in India last year, it is branchless and paperless, making heavy use of biometrics and artificial intelligence.
  • The jury is still out on how well digibank has worked in India. In terms of customer acquisition, it is outstanding: 1.5 million customers acquired with a staff of just 60, a headcount number that will fall to about 30 by the end of the year.
  • CEO Piyush Gupta says a bank would ordinarily need 400 to 500 employees to achieve those numbers. But DBS has not yet put a number to the balance achieved through the venture and it is thought to be below the bank’s expectations, although naturally it must be given time to grow.
  • Also, digibank in India is at this stage only a savings and payments bank, which is fine as a start, but the real profitability will only come when it can earn fees through wealth management, insurance and lending.

DBS Group Holdings Ltd is an investment holding company. The Company performs its operation through its subsidiary, DBS Bank Ltd (the Bank), which is engaged in a range of commercial banking and financial services, principally in Asia. The Company’s operating segments include Consumer Banking/Wealth Management; Institutional Banking; Treasury, and Others. The Consumer Banking/Wealth Management segment provides individual customers with a range of banking and related financial services. The Institutional Banking segment provides financial services and products to institutional clients, including bank and non-bank financial institutions, government-linked companies, corporates, and small and medium-sized businesses. The Treasury segment provides treasury services to corporations, institutional and private investors, financial institutions and other market participants. The Others segment includes a range of activities from corporate decisions.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

The projected upper bound is: 21.79.

The projected lower bound is: 20.36.

The projected closing price is: 21.07.

DBS GRP HLDGS closed down -0.060 at 21.080. Volume was 42% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open High Low Close Volume___
21.140 21.140 21.010 21.080 2,392,100

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close:   20.83 20.86 19.81
Volatility: 16 21 20
Volume: 3,628,480 4,212,050 4,481,525

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

DBS GRP HLDGS is currently 6.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of DBSM.SI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on DBSM.SI and have had this outlook for the last 8 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 77.6119. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.90. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 46 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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