When evaluating a stock, focus on business performance rather than falling share prices
ON OCT 7, Citi downgraded OCBC to a “sell”, and the reaction was swift.
By the end of last week, shares of OCBC and UOB had fallen to around 11 per cent below their 52-week highs. Meanwhile, DBS was down by slightly more than 7 per cent. The Straits Times Index was around 7.3 per cent lower than its peak over the past year.
While the decline was quick, it is not a market correction; that would be a decline of 10 per cent or more. Yet, the mood has shifted just as quickly.