Being the top dog in the aviation industry, SIA (SGX: C6L) is one of the leading lights of SGX. As the world emerges from the ravages of the COVID-19 pandemic, how will SIA share price (SGX: C6L) unravel in the coming months? To make money from stocks, it is crucial to buy low and sell high. In that perspective, I would like to share my insights on whether the current SIA share price is a good entry point.
My last article on SIA share price (SGX: C6L) was on 6 February 2022. In that article, I predicted SIA share price to be trading between the $6 to $7 bandwidths in 2022. So far, the counter is still some way off the levels that I have forecasted. However, it should be noted that the article was written before the implosion of the Russian-Ukraine war, the US interest rate hikes and the COVID-19 lockdowns in China. Given the dramatic change in the operating climate, let’s take a look whether my original thesis still stands.
Due to the countless twists and turns of the pandemic saga, analysing the outlook of SIA share price is always a tricky business. But one thing I think I got it right is the close correlation of SIA share price with the oil price movements. Looking at the above chart, we can see that crude oil price peaked at USD126.86 per barrel on 8 March 2022. On that day, SIA share price crashed to a low of $4.87 from $5.40 on 18 February 2022. Prior to the hit from oil prices, SIA share price had been on a roll as Singapore announced a slew of public health measure relaxations aimed at opening up the borders.
Needless to say, the spike in crude oil price was due to the Russia’s “special military operation” in Ukraine. Since then, crude oil prices had stabilized to the USD100 to USD110 per barrel range. Similarly, SIA share price recovered to the $5.20 to $5.50 price range. Now that Singapore has lifted its border’s restrictions, will the oil price surge stand in the way of SIA share price recovery?
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 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 given a somber reminder
There has been much hype that as we enter into the endemic phase in Singapore, SIA share price will recover as international air travel demands return. While such an assumption is not entirely wrong, the latest financial result shown that [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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