Oversea-Chinese Banking Corp. Limited (SGX:O39) $247M Loan Allowance

Oversea-Chinese Banking Corp. Limited (SGX:O39) $247M Loan Allowance

Oversea-Chinese Banking Corp. Limited (SGX:O39) $247M Loan Allowance

  • Offshore shipping woes have increased loan provisions at Singapore lender OCBC in the first half.
  • The bank said net allowances for loans and other assets were SGD 337m ($247m) in the period, up from SGD 255m a year ago.
  • But the figure was little changed in the second quarter.
  • Total non-performing assets (NPAs) stood at SGD 2.92bn at the end of the second three months, “relatively stable” compared to SGD 2.87bn in the first quarter, it said.
  • Former head of integrated marketing and analytics at OCBC Malaysia Ong Shi Jie (pictured) has taken on a new role as general manager of personal loans at Hong Leong Bank. Ong who was also an acting head of finance and planning at OCBC, is starting her new journey at Hong Leong Bank in August 2017, according to her LinkedIn.
  • Based in Kuala Lumpur, Ong joined OCBC as manager of wealth product marketing in February 2007. She held on to the role for a year before climbing the ranks in OCBC. She was head of integrated marketing and analytics with OCBC for two years.  Prior to joining OCBC in 2007, she was previously a marketing manager at Citi Malaysia for about two and a half years.

Oversea-Chinese Banking Corporation Limited (the Bank) is a Singapore-based financial services company. The Bank is engaged in the business of banking, life assurance, general insurance, asset management, investment holding, futures and stockbroking. Its segments are Global Consumer/Private Banking, Global Corporate/Investment Banking, Global Treasury and Markets, Insurance and OCBC Wing Hang. Global Consumer/Private Banking provides products and services to individual customers. Global Corporate/Investment Banking serves institutional customers ranging from large corporates and the public sector to small and medium enterprises. Global Treasury and Markets engages in foreign exchange activities, money market operations, fixed income and derivatives trading, and offers structured treasury products and financial solutions. Insurance provides both life and general insurance products. OCBC Wing Hang offers a range of commercial banking and related financial services.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 2.71.

The projected upper bound is: 2.96.

The projected lower bound is: 2.73.

The projected closing price is: 2.85.

CHINA OVLD HLDG closed up 0.044 at 2.842. Volume was 100% below average (consolidating) and Bollinger Bands were 1% wider than normal.

Open       High       Low         Close       Volume
2.836      2.842      2.829      2.842       0

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

Moving Averages: 10-period      50-period      200-period
Close:                       2.84               2.69                2.70
Volatility:                21                   28                    29
Volume:                   50                  54                    67

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

CHINA OVLD HLDG gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
CHINA OVLD HLDG is currently 5.4% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of 0688.SG (bearish). Our trend forecasting oscillators are currently bullish on 0688.SG and have had this outlook for the last 17 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 29.3104. This is not an overbought or oversold reading. The last signal was a buy 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 60.55. 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 15 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 39. This is not a topping or bottoming area. The last signal was a sell 12 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 sell 3 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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