Dear readers, yesterday the Singapore stocks markets sank. The benchmark Straits Times Index (STI) dived by 3.45%, a magnitude which has not been seen by investors for a long time for the Singapore stocks markets.
There was one Singapore stock which sank almost twice as much as the Singapore stocks markets yesterday. This Singapore stock was SIA stock which shed 6.26% and these are the four reasons, in my opinion, why SIA stock by such a large margin yesterday.
First, the common factor of Russia’s invasion of Ukraine that sank most Singapore stocks.
Second, the persistent high number of Singapore Covid-19 infections which may cause investors to fear a tightening back of Singapore’s border to the world.
Third, increases in oil prices due to the Russian factor. With oil as fuel for aircraft, higher oil prices mean higher cost to SIA.
Last but not least, some investors may be concerned about the third quarter FY21/22 result of SIA to be announced. However, after Singapore stocks markets closed yesterday, SIA reported a quarterly profit for the first time since the onset of the pandemic, with a third quarter net profit of $85 million.
I am always not a fan of aviation stocks and like what some say, aviation stocks may not do well when economy are good as this means cost of fuel to SIA is higher. And when economy are not doing well, demand of flying for leisure or business will also drop.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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