Singapore Airlines reported lower third quarter net profit, hit by provisions for fines by the European Commission and South Korean regulator, as well as a settlement with US authorities on cargo price-fixing charges.
Phillip said that if the non-recurring cargo fines of $199.1 million were removed, SIA’s profit after tax and minority interests actually increased 21% year-on-year to $487.4 million.
Singapore Airlines fell 1.5% to a six-month low of $14.82 after the world’s second-biggest airline by stock market value reported a worse-than-expected drop in third-quarter profit due to charges to pay for antitrust fines.
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The following companies may have unusual price changes in Singapore trading. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index gained 0.3% to 3,229.69.
Biosensors International Group (BIG SP): The maker of drug-coated stents used to treat blocked arteries said third-quarter profit rose 8% to $13.3 million a from a year earlier. The stock was unchanged at $1.14.
Singapore shares are likely to fall on Monday as anti-government rioting in Egypt prompts investors to flee emerging markets and put their money in less risky assets. Singapore’s benchmark Straits Times Index <.FTSTI> rose 0.31% on Friday to 3,229.69 points.
Here are some stocks and factors to watch:
Singapore Airlines (SIAL.SI), the world’s second largest airline by market value, may be in focus after it reported lower third quarter net profit, hit by provisions for fines as well as a settlement with US authorities on cargo price-fixing charges.
The following companies may have unusual price changes in Singapore trading. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index was little changed at 3,219.83.
CapitaLand (CAPL SP): Southeast Asia’s biggest developer said it has agreed to buy a residential property in eastern Singapore for $100.7 million . The property will be redeveloped into a condominium with 150 units, comprising of one-bedroom and two-bedroom apartments. CapitaLand slipped 1.1% to $3.65.
Despite the sequential declines, selling is light with only 116,000 shares traded, as the results were largely within expectations.
Daiwa has lowered its earnings forecast for SIA by 6-17% for fiscal years 2011-2013 to account for higher jet-fuel prices and to include cargo price-fixing penalties.
The following companies may have unusual price changes in Singapore trading. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index lost 0.1% to 3,181.15.
Fortune Real Estate Investment Trust (FRT SP): The Hong Kong-based shopping mall operator said fourth-quarter income for distribution increased 11% to HK$105.7 million ($17.4 million) from a year ago. The stock was unchanged at HK$4.05.
Revenue gained 12% to $269.5 million, SIA Engineering said in a statement to the Singapore stock exchange today. The group will continue to benefit from the recovery in the aviation industry, according to the statement. Demand for maintenance, repair and overhaul services is expected to remain firm.
The following companies may have unusual price changes in Singapore trading. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index dropped 0.7% to 3,184.60.
Singapore’s Keppel Corp (KPLM.SI), the world’s largest builder of oil rigs, said on Sunday it has secured an order from Clearwater Capital Partners to build two jackup rigs for US$360 million ($462 million). Keppel Corp. fell 1.2% to $11.36.
Goh Choon Phong has been appointed non-ED wef Jan 1
Work experience: Executive VP, marketing & the regions, Singapore Airlines Ltd; president, Singapore Airlines Cargo Pte Ltd
The following companies may have unusual price changes in Singapore trading today, say Thomson Reuters and Bloomberg. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index gained 0.1% to 3,254.25.
Singapore shares may rise in early trade on Thursday after Wall Street indices gained overnight following strong data on US private-sector jobs, boosting confidence its economy is on a recovery path.
Singapore Airlines, the world’s second-biggest carrier by market value, said it will reorganise to take on new challenges and pursue growth opportunities.
Executive Vice President Mak Swee Wah will take on additional responsibilities for marketing and sales as well the delivery of products and services starting Feb. 1, Singapore Airlines said today in a statement to the stock exchange. He is currently in charge of products and services.
The following companies may have unusual price changes in Singapore trading today. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index climbed 0.1% to 3,212.46 yesterday.
Commodity suppliers: The Thomson Reuters/Jefferies CRB Index, which tracks prices of 19 commodities from copper to corn, slipped 1.1% in New York yesterday. Noble Group (NOBL SP), a Hong Kong-based commodities supplier, rose 0.5% to $2.17. Olam International (OLAM SP), a Singapore-based supplier of agricultural commodities, fell 0.3% to $3.19.
Goldman Sachs downgrades the Asian airline sector to Neutral from Attractive following the sector’s outperformance in 2H 2010.
“Our downgrade is underpinned by three key reasons: (1) slower traffic growth momentum expected; (2) rising unit costs to result in margin pressure; and (3) sector appears fairly valued.”
Says investors should be selective in 2011, prefers Buy-rated Cathay Pacific (0293.HK), Singapore Airlines (C6L.SG), and CEA H- (0670.HK) and A-shares (600115.SH).
China Eastern Airlines Corp., Singapore Airlines and partners agreed to combine three air-cargo carriers to bolster their presence in Shanghai, mainland China’s busiest freight hub.
China Eastern, Singapore Air’s cargo unit, a unit of Taiwan-based EVA Airways Corp. and China Ocean Shipping (Group) Co. will invest a total of 2.05 billion yuan ($405 million) in China Cargo Airlines to support its acquisition of two other freight carriers, according to a Hong Kong stock exchange statement today.
Singapore shares were down at midday on Monday mainly due to concerns about Seoul’s new capital controls and tension on the Korean peninsula, but Singapore Airlines (SIAL.SI) may be in focus after announcing a $65 million stake buy in China Cargo Airlines.
By the midday break, the Straits Times Index (STI) <.FTSTI> lost 24.86 points at 3,128.15. Total value of shares traded in the morning session was $800.8 million, up from $774.9 million on Friday.
Weekend Comment Jan 28: SIA disappoints
The full-service carrier reported a disappointing set of third quarter results after the market closed on Jan 28, falling short of the average profit estimates of analysts tracked by Bloomberg. For the three months ending Dec 31, SIA posted a 29% y-o-y fall in net income to $288.3 million, after it booked charges of as much as $199 million relating to antitrust cargo fines.
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