SIA:

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:

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
© Jachin Capital Pte Ltd

UEN: 201419754M


The contents of this document are for information only and is taken or compiled from sources that we, Jachin Capital Pte Ltd, believe to be reliable. To the maximum extent permitted by law, we do not make any representation or warranty (express or implied) that this information is accurate, timely or complete and it should not be relied upon as such. Opinions expressed are our current opinions as at the date of this document only and are subject to change without notice. We endeavour to update on a reasonable basis the information discussed but regulatory, compliance or other reasons may prevent us from doing so. The publication and distribution of this document is not and does not imply any form of endorsement of any person, entity, service or product described or appearing here. This is not and does not constitute or form an offer to buy or sell nor the solicitation of an offer to buy or sell any security or financial instrument nor to participate in any particular trading or investment strategy. We are not soliciting any action based on this document. The information, services and products described or appearing here are intended only for Accredited Investors (as currently defined in the Securities and Futures Act) and are not intended for nor targeted at the public in any specific jurisdiction. This information does not take into account the particular investment objectives, financial situations or needs of individual investors. Investors should seek independent financial, tax or legal advice or make independent investigations as considered necessary or appropriate before making an investment decision. Investments involve risk. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment instrument.

Essential SSL