Why did SIA shares climb 3% last week?

The airline’s stock spiked up after the Civil Aviation Authority of Singapore launched a new Vaccinated Travel Lane for Germany and Brunei.

  • Singapore Airlines (SGX: C6L) share price hit S$5.08 on Friday (20 August 2021)
  • The airline will be kickstarting in-bound passenger flights from Germany from 07 September
  • The stock, which is up 12% in the last three months, has a consensus target price of S$4.56
  • Interested in trading SIA shares? Open an account with us to get started.

SIA share price: what’s the latest?

Singapore Airlines shares jumped up 3% last Friday, after it was reported that it would operate flights from Germany starting from 07 September 2021.

A total of seven designated in-bound passenger flights from Germany to Singapore taking only fully vaccinated passengers would take place each week.

Five of these flights will be operated by SIA while the remaining two will be operated by German airline Lufthansa.

This new arrangement comes under a new Vaccinated Travel Lane announced by Singapore on 19 August, in which fully vaccinated travellers flying in from Germany will not have to serve a stay-home notice upon arrival.

SIA also announced the operation of one flight weekly for fully vaccinated travellers from Brunei to Singapore on the same day, with fully vaccinated travellers from Brunei also allowed to enter Singapore under the Vaccinated Travel Lane.

If the new travel arrangements are suspended, SIA says it will adhere to authorities’ guidance and will inform customers accordingly.

Additionally, if flights have to be cancelled or changed to one that admits passengers regardless of vaccination status, all affected customers will be eligible for a refund of their tickets.

What’s your view on SIA? Take a long or short position today

SIA shares are up some 12% in the last three months, and nearly 18% year to date.

Go long or short with CFDs on 16,000+ shares with our award-winning platform.* Perfect your technique with S$200,000 worth of virtual funds in your free demo account. Create a free demo account here.

* Based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2020. Awarded the best retail FX provider for Asia by FX Markets in 2020

Are SIA shares worth buying now?

The blue-chip currently has a consensus rating of ‘underperform’ and target price of S$4.56, based on the latest SGX StockFacts analyst data.

The target price represents a potential 9.3% downside from SIA’s last traded price of S$5.03 as at 15:10 SGT on Monday (23 August).

Two weeks ago, UOB analysts lifted their call on SIA to a ‘hold’ and target price to S$4.85, after the group reduced its net loss by 64% year-on-year to S$409 million for the June-ending quarter.

The analysts believe that while SIA will continue to face the challenge of having sufficient capacity to cater to both passenger and cargo demand, sentiment towards the aviation industry is still likely to improve further down the road.

Meanwhile, OCBC analysts reiterated a ‘hold’ recommendation on a higher target price of S$4.90 (against S$4.75 previously), after they applied a ‘slight environmental, social and governance (ESG) premium’ and adjustments on the stock’s valuation.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.