SIA share price (SGX: C6L) in explosive form

LIFETIME MEMBERSHIP Christmas comes early for investors as SIA share price (SGX: C6L) went on a rampage following news of the launch of the eight Vaccinated Travel Lanes (VTLs) with countries in US and Europe. Surely, it is a case of being at the right time and right place for SIA share price (SGX: C6L). The year-end festive season is traditionally SIA’s best quarter as travel demands typically increase with the December school holidays. So is it really the proverbial “U-shape” recovery or yet another false dawn for SIA share (SGX: C6L)?

Expectation of a long-awaited recovery for SIA share price (SGX: C6L) has reached an almost hysterical level for many investors. After all, we are talking about Singapore Airlines, the pride of our nation.

SIA share price C6L

For SIA investors, it must have been a bitter sweet feeling. The rights issues and the two tranches of Mandatory Convertible Bonds (MCBs) had diluted the share’s value to the $3.50 bandwidth in 2020. That was really the darkest chapter for SIA share price (SGX: C6L) as air travel was decimated by the devastating pandemic with no ends in sight. Subsequently, the revelation of a 90% effective vaccine (Pfizer) sent SIA share price (SGX: C6L) soaring by 21% in November 2020.

Yet even with vaccines being rolled out globally at an aggressive pace in 2021, variants emerged to cause multiple waves of infections in many countries. As a result, border restrictions remain firmly in place across many countries. This threw a spanner in the works for SIA share price (SGX: C6L), which peaked in April 2021 at a high of $5.70. The peak of SIA share price (SGX: C6L) also coincided with the period when the highly infectious Delta ravaged India and then various countries.

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SIA share price in explosive destiny

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As we enter the year end, Singapore has almost 85% vaccination rate while the pandemic situation has stabilized considerably across the world. Against this backdrop, it seems to me that the worst is over for SIA share price (SGX: C6L). Previously, data extracted from SGX shows that institution funds have been walloping SIA share price (SGX: C6L). For four consecutive months, SIA hit the top ten net sell institutional stock list. In June, fund houses net sold $30.8 million of shares. In July, $40.8 million of shares were sold. In August, big boys net sold $19.6 million worth of SIA shares. Then in September, the big boys net sold $38.7 million worth of SIA shares.

The announcement of the 11 VTLs turned the tables for SIA share price (SGX: C6L) as institutional investors sent this counter into the top ten institution net buy list, with $20.9 million worth of shares being net bought. As I mentioned in my previous article, the VTLs would be a major catalyst for SIA share price (SGX: C6L). In this article, I will share my outlook of SIA share price (SGX: C6L) in the coming months.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in SIA before. Whether SIA share price (SGX: C6L) will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

SIA share price (SGX: C6L) fighting gravity

Although the VTLs had set SIA share price (SGX: C6L) on fire, investors must stay level-head. Fundamentally, the national carrier is still making quarterly operating loss, albeit at a more “manageable” levels. On a more encouraging note, the Group recorded five consecutive decreasing quarterly operating losses. The net loss for Q1FY2021/22 was $409 million. The coming half-yearly financial result would be a baptism of fire for the Group as it could set the stage for the SIA share price (SGX: C6L) performance in 2022.

For the coming financial result, I think the Group should [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: October 19, 2021 — 2:01 pm

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