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This positive trend is expected to continue sequentially, resulting in sector ARPU to grow 2-3% q-o-q within six months and Bharti to drive 18% of Singtel’s associates earning by FY2022.
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Looking at the daily price chart, a breakout above the recent high of $2.60 could validate a major reversal and set a new uptrend, believes Chan. Meanwhile, the weekly price chart signals a major trend reversal pattern of “inverted head and shoulder”. “The positive reading from both the stochastic and MACD (gaining strength) suggests Singtel has a decent chance to trade higher if it breaks $2.60. We see potential for short-term consolidation but downside risk may be capped at support zones of $2.27-2.37. Once current selling pressure normalises, uptrend is set to resume,” says Chan.