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Retail Investors Have Been Buying These 3 Stocks Aggressively

There are generally two groups of investors in the stock market: Institutional investors and retail investors.

The former are typically large investment organisations, such as hedge funds, mutual funds, unit trust companies, sovereign wealth funds, insurance companies and so on. The latter are individual investors, like you and me.

Institutional investors tend to possess vastly greater resources than individual investors when researching stocks. Hence it may be useful to keep a close eye on what institutional investors are doing, as a way to generate ideas.

But, some investors may believe in the wisdom of the crowd. For such investors, what other retail investors are buying or selling may be useful to know.

In this article, I will look at three Singapore stocks that have seen the highest net purchases in dollar value by retail investors in the week ended 30 March 2018. They are: DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corp Limited (SGX: O39), and Singapore Telecommunications Limited (SGX: Z74)


Source: Singapore Exchange; SGX Stock Facts

DBS and OCBC likely need no introduction, as they are two of the three major banks based out of Singapore.

In its latest earnings update, which was for the fourth quarter of 2017, DBS reported a 31% year-on-year increase in net profit to S$1.19 billion. The bank’s book value per share also grew at a respectable rate of 5.8% to S$17.85. Looking ahead, DBS expects loans growth of between 7% and 8% in 2018, and an improvement in its net interest margin.

As for OCBC, the bank’s latest earnings update was also for 2017’s fourth quarter. OCBC had a good quarter too, as its net profit jumped by 31% year-on-year to S$1.03 billion, and its book value per share stepped up by 5.5% to S$8.96. In OCBC’s latest earnings update, CEO Samuel Tsien said that “apart from the stress in the offshore oil and gas support services portfolio, the credit quality of the [bank’s] overall loan portfolio remained sound.” Tsien also mentioned that there’s “renewed optimism” in OCBC’s key markets.

Singtel is another company that most Singaporeans should be very familiar with, given that the company is Singapore’s largest operational telco. Singtel’s latest earnings update was for the quarter ended 31 December 2017. In that period, the company experienced a 4.4% increase in revenue. But, its profit attributable to shareholders declined by 8.5% to S$890.2 million. For its fiscal year ended 31 March 2018 (FY2018), Singtel expects to produce “low single digit” growth in both revenue and EBITDA (earnings before interest, taxes, depreciation, and amortisation) in its core businesses.

Following the crowd could be a useful tool in your toolkit when sourcing for investment ideas. But do note that the information presented here is by no means a recommendation to take any action on the stocks mentioned. Instead, it should be viewed only as a useful starting point for further research.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has recommendations on DBS Group Holdings.