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Wed, Nov 25, 2020 – 11:35 am
SINGAPORE Airlines (SIA) share price has been making steady gains for two days with high volumes.
The shares rose 8.2 percent or S $ 0.36 on the day to S $ 4.77 at around 9.15am on Wednesday. That’s about 15.7 percent higher than Monday’s close, before the rally began, and 16.6 percent higher than Friday’s close.
It fell slightly to trade at S $ 4.64 as of 11:12 am Wednesday, rising S $ 0.23 or 5.2%, with 25.2 million shares changing hands.
By value, SIA was the top-traded window on the Singapore exchange on Wednesday morning.
Most of its volume came from large exchanges, each valued at more than S $ 150,000. Nearly a hundred large transactions took place at 10:59 am Wednesday, according to ShareInvestor data.
The accountant began climbing on Tuesday amid active trading, rising 8.4 percent or S $ 0.34 to close at S $ 4.07 on 34.1 million shares.
That’s nearly seven times its average daily turnover of around five million shares, based on SIA’s average monthly cumulative trade volume over the past three months, according to the Singapore Stock Exchange website.
The last time it closed above those levels was on May 5, the last trading day of accumulated rights before the SIA cash call for $ 8.8 billion that included a share rights issue and a mandatory convertible bond. (MCB) to 10 years.
The drop in SIA’s share price on Monday, following the last-minute postponement of the Singapore-Hong Kong air travel bubble, was less severe than the drop seen in the shares of its Hong Kong peer, Cathay Pacific. Airways.
SIA closed down 0.5 percent or 0.02 Singapore dollars on Monday, while Cathay Pacific fell 4.2 percent or 0.30 Hong Kong dollars to end at 6.83 Hong Kong dollars, data shows. by ShareInvestor.
Cathay Pacific also rallied on Tuesday, advancing 7.8 percent to HK $ 7.36 at the close, before rising further by approximately 1 percent to trade at HK $ 7.43 at 10.48 a.m. Wednesday. .
The air travel bubble was suspended at the 11th hour, less than 24 hours before the launch scheduled for Sunday. An SIA and Cathay Pacific flight was originally planned to take off at 10 am.
The governments of Singapore and Hong Kong will announce in early December when flights will restart.
CGS-CIMB wrote in a research note on Monday that while the suspension of the bubble was disappointing, it will likely be part of “a series of stops and starts on the arduous road to recovery.”
Investors have also been optimistic about the imminent arrival of Covid-19 vaccines, which has led SIA shares to outperform the Straits Times index by 5.3% in the last month, the CGS analyst noted. CIMB Raymond Yap on Monday.
He then reiterated his call to “add” to SIA and the S $ 4.57 price target, saying that “patient investors with a one-year horizon should be able to reap the rewards of upcoming Covid-19 vaccines.” CGS-CIMB recommended investors to buy on any downturn.
Separately, the SIA announced late Tuesday that 10-year bonds worth S $ 500 million will be issued on December 2. a select group of private investors “.
The net proceeds from the issue will be used for general purposes, including refinancing existing loans.
With the S $ 500 million notes, SIA has raised about S $ 12.7 billion since the beginning of fiscal year 21. That includes S $ 8.8 billion from the rights issue and MCB, S $ 2 billion from guaranteed financing, S $ 850 million through a five-year convertible bond announced two weeks ago, and more than S $ 500 million through new committed credit lines and a short term. term loan without collateral.
On July 30, SIA shares sank to their lowest level in more than two decades, after the flag carrier posted its biggest quarterly loss as travel demand evaporated due to the coronavirus pandemic.
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