Guest

SIA Shares Drop To 8-month Low

Thu Aug 08, 2002 11:31 am

Was working at CX in YVR today and saw this interesting news on CX's News network.

Singapore Airlines' share hits the 8-month low, it's market value has dropped S$1.3billion on the Strait Times Index.

The reason why SIA stock drops sharply is due to main concerns on the recovering of the US economy, could affect SIA's global operations.

Meanwhile, CX reported a dramatic increase of revenue by 7% for the interim performance. Thanks to the recovering of US economy.

Bigo747/1126
 
docpepz
Posts: 1706
Joined: Thu May 24, 2001 8:20 pm

RE: SIA Shares Drop To 8-month Low

Thu Aug 08, 2002 1:34 pm

"The reason why SIA stock drops sharply is due to main concerns on the recovering of the US economy, could affect SIA's global operations.

Meanwhile, CX reported a dramatic increase of revenue by 7% for the interim performance. Thanks to the recovering of US economy."

These two sentences seem to contradict each other on their perspectives on the US economy!

 
Guest

RE: SIA Shares Drop To 8-month Low

Thu Aug 08, 2002 1:43 pm

It is a contradiction. It's the investors' psychological problem.
 
Guest

Correction

Fri Aug 09, 2002 1:42 am

Just want to make a correction.

SIA's market value has actually dropped S$2.1billion in 3 days. That's around USD$1.2billion.

Another main concern is for reports coming out saying South Africa ask SIA to take SAA stake.
 
jesseycy
Posts: 322
Joined: Fri Aug 03, 2001 2:15 pm

RE: SIA Shares Drop To 8-month Low

Fri Aug 09, 2002 5:05 pm

So anyone has a good speculation of why the shares are dropping so low? Is it because their load figures are not good? What are they anyway?

At any other time, I would say not worry, the Singapore government will bail them out. But now, hmm, S'pore seems to be easing off its tightly controlled economy...... So this time, it looks like SIA is pretty much on its own!

But it's a great airline, with lots of reserves... No worry still......
 
hkgspotter1
Posts: 5750
Joined: Fri Nov 04, 2005 12:43 pm

RE: SIA Shares Drop To 8-month Low

Fri Aug 09, 2002 5:30 pm

One person could answer your questions but for some strange reason he's not to be seen on this topic.
 
Ex_SQer
Posts: 1351
Joined: Wed Apr 24, 2002 5:43 am

RE: SIA Shares Drop To 8-month Low

Fri Aug 09, 2002 7:06 pm

Jesseycy: Investors are spooked, that's all. If you look at the stock market this past few weeks you'll see that it's been see-sawing everyday and people are freaked out by all the uncertainty in the economy today.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: SIA Shares Drop To 8-month Low

Fri Aug 09, 2002 7:24 pm

Jessecy,

Singapore Airlines' performance seen February (arguably January) 2002, has been better than the months for the year before.

Load factors have been increasing since February and Revenue Passenger Kilometres have been consistently increasing above the month from the year before.

Inspite of the load factors increasing, capacity has also increased to meet the demand.

This is in contrast with competitors around the world and in the region where load factors have increased, but capacity has been dramatically cut, and revenue passenger kilometres continue to fall.

Shares in Singapore Airlines fell because of a revaluation in the industry according to analysts based in Singapore and other cities in Asia. In addition, the U.S. economy is unstable and the outlook is unclear.
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