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SGT $3.98

SOMEONE'S BUYING

  1. Grant62

    4,694 posts.
    So, who bought SingTel today?

    Answer:
    The Institutions.

    On a day where SGT trading averages 3.5m shares, 12.75m shares traded hands today.

    Of this amount, UBS Warburg accounted for 6.85m shares on the buy side, and 4.9m shares on the sell side (average buying volume is 1.0m shares, vs 800k selling volume).

    Morgan Stanley also accounted for 3.3m of the buy side (174k avergae), vs nil selling.

    Apart from UBS Warburg, the other main seller was SSB with 3.0m shares sold (10x normal trading volume).

    Between them, UBS Warburg and Morgan Stanley accounted for 80% of the buying activity. On the selling side, UBS Warburg and SSB accounted for 62% of the day's sales.

    Netted out, today's trading action amounted to a net buying day for the institutions.

    Since late last week, when the share price briefly touched out @$1.24, but volume adjusted, averaged out @$1.29, the share price has risen in value to tonight's close of $1.53, with U bidders @$1.51, and $1.50.

    In just over a week, SGT's share price has risen by 19% from its its volume adjusted low, and 23% from its all-time low price of $1.24.

    During the past week, however, little has changed in terms of SGT's outward looking fundamentals. But, with judicious consideration of the following, the Institutions may well have taken a closer look at SGT for the future. In particular:
    1)
    Singporean GAAP rules are stricter and more conservative in nature than either their Australian, or US equivalents;
    2)
    SGT's accounting and management style is more conservative than the former styles of either C&W, Vodafone and /or C&W Optus;
    3)
    SGT management have decided to take a more hands on roll at the local Optus level;
    4)
    the collapse of Worldcom leaves opportunities open for SGT, particularly in its home market of the Island State (ie: by removing a real and apparent competitor from the Singaporean local scene, as well as from the Asian backbone /cable scene);
    5)
    SGT has taken active steps to reign back in the value of its Optus acquisition (ie: by making it pay its own way);
    6)
    punters positioning themselves for a favourable FoxTel PayTV outcome; and
    7)
    last week's call by ABN Amro, calling SGT a technical "buy" at the low-1.30 mark, and a fundamental "buy" above this.

    The biggest catalyst to ST's changing fortunes, however, appear to be:
    1)
    the demise of Worldcom; and
    2)
    Singapore's more strictly applied GAAP rules.

    Could it, therefore, be a case of SGT becoming a "safe haven" for those interested in local telco offerings?

    Time will tell, but meanwhile, Vodafone's UK share price continues to deteriorate, having recently touched out @84p.

    So, at least for the last week of trading, SGT's share price has been the stellar performer in local and global trading circles.

    Hence, the source of some of today's buying interest which, having regard to Morgan Stanley (at least), appears to have come from offshore.


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