SIA is down almost 40% YTD and currently trading near its all-time low of $3.70 (low yesterday and on Mar 24 as well), ex-rights issuance.
This price action should not surprise as the recent pandemic has brought air travel to a screeching halt. In addition, SIA reported its biggest ever quarterly net loss yesterday, partly driven by bad fuel hedging bets. Travel demand is expected to continue to be depressed, although Minister Lawrence Wong recently stated Singapore is currently working with AU, CA, NZ and S.Korea to facilitate the opening of cross-border essential travel and may allow travel to specific cities in China, such as Beijing and Shanghai.
Looking at the above chart, the obvious immediate support would be $3.70. Beyond that remains uncharted territory, although a break of the $3.70 support may trigger a sharp selloff to $3. To the upside, the Fibonacci retracement resistance levels are at $4.50 and $5.
Supports: $3.70, $3.00
Resistances: $4.50, $5.00, $5.450
SATS is due to announce its earnings today. According to Bloomberg, analysts are expecting net income to slide 23% yoy to $186mil (EPS 16.7 cents). The company issued a profit warning late last month, indicating profits to fall by up to 25% yoy.
Year to date, SATS is down about 47%. As indicated in the chart above, it is currently trading near its recent-low of $2.52 which was last traded on Mar 24. The stock is still some way off its GFC-low of $1.10, although the uptrend since then has clearly broken down. The company’s outlook remains bleak, especially after it was announced that Changi airport’s Terminal 2 will be closed until Nov 2021 and operations at Terminal 4 will be suspended temporarily. Passengers dropped 99.5%, from 5.58mil in Apr 2020 to 25,200 last month.
The stock price is likely to trend lower, with the first point of support at $2.52, following that, $2. To the upside $3.30 and $3.79 would be areas short-term buyers would look to exit.
Supports: $2.52, $2.00
Resistances: $3.30. $3.79
Sources: All images from Bloomberg