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.
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.
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.]LIFETIME MEMBERSHIP
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