Singapore Airlines is up 0.9% at $10.85, outperforming the STI’s 0.3% gain slightly, but the stock remains mired within recent trading ranges despite the carrier agreeing to sell its 49% Virgin Atlantic stake albatross to Delta for US$360 million ($439 million) and several analysts expressing hopes for a special dividend.
“A lot of issues with SIA are still in place. They’ve still got to find a way to better defend themselves against low-cost carriers and the Mideast carriers. Selling Virgin Atlantic doesn’t really help them in that regard,” says Andrew Orchard, an analyst at CIMB. “It’s a nice one-off boost from the gain on disposal, but nothing’s really changed in terms of how they’re going to operating the airline.”
The stock’s intraday high of $10.88, a zone it has bounced off several times in recent months, will likely continue to cap gains.
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