⚠Top movers alert: SIA falls 4%, Seatrium tumbles 11% - what is going on?
$SIA(C6L.SI)$ : tumbled as much as 5.5% this morning to $7.34 after reporting its first quarterly loss in more than four years in an after-market announcement yesterday
🛢The soaring cost of fuel - that has led its jet fuel cost to balloon by S$991 million - as well as increasing losses from its 25.1% Air India stake, saw SIA post a quarterly net loss of S$76 million
Operating profit shrunk 74% to S$106 million
Nevertheless, SIA's management remains upbeat on travel flows, saying passenger travel demand in the current quarter, which covers the peak summer period, “remained robust”
✳SIA shares are currently down 4.3% as of 11AM to $7.44 while trending SIA call warrant $SIA MB eCW261229(NVPW.SI)$ (https://warrants.com.sg/tools/livematrix/NVPW) is down 26.5% to $0.025
$Seatrium Ltd(5E2.SI)$ : After jumping 19% over the past week, Seatrium shares tumbled 11% this morning to a low of $2.10 to give up 60% of last week's gains
Prior to today's move, Bloomberg indicated that the relative strength index on Seatrium was above 70, suggesting that the stock may be overbought
❗Today's drop is accompanied by trading volume that has surged to almost 6 times its 20-day average
✂There are reports on Bloomberg that Seatrium's ratings and target price had been cut by a broker to underweight and a lower target price
The 12-month target price of 10 analysts polled by Bloomberg is currently $2.60, with a buy rating of 4/5, even after factoring the target price cut by the said broker
✳Macquarie's trending Seatrium call warrant $Seatrium MB eCW261230(UGWW.SI)$ (https://warrants.com.sg/tools/livematrix/UGWW)is currently down 34.8% to $0.015 as Seatrium recovered some of its intraday losses to be down 8.5% at $2.16 as of 11AM
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