Key Indices
Top Stories
Company Update | Singapore Airlines (SIA SP/SELL/S$6.61/Target: S$6.16)
- Aug 26 operating data was in line with our projection, with passenger and cargo loads rising 1.5% and 2.8% yoy respectively. The sharp rebound in jet fuel prices amid renewed Middle East tensions led us to cut our FY27/28 earnings forecasts by 21%/5% respectively and lower our 2QFY27 net profit guidance to S$230m-370m. We remain broadly neutral on SIA’s potential capital injection to Air India. Downgrade SIA to SELL due to a lack of near-term catalysts, with a lower target price of S$6.16.
Market Spotlight
- US stocks were lower on Tuesday. All three major indexes fell as consumer discretionary, utilities and consumer staples sectors slid. There were more decliners than advancers on both the NYSE and the Nasdaq.
- The FSSTI fell 79.38 points to 5,638.64, on the back of weakness in DBS and OCBC Bank, with both mid- and small-cap indices falling with a broad market decline on S$1.83b turnover.
Technical Analysis
Civmec (CVL SP)
- Trading Buy Range: S$1.59-1.60
Oversea-Chinese Banking Corp (OCBC SP)
- Trading Sell Range: S$31.47-31.48
Top Stories
Company Update | Singapore Airlines (SIA SP/SELL/S$6.61/Target: S$6.16)
- Aug 26 operating data was in line with our projection, with passenger and cargo loads rising 1.5% and 2.8% yoy respectively. The sharp rebound in jet fuel prices amid renewed Middle East tensions led us to cut our FY27/28 earnings forecasts by 21%/5% respectively and lower our 2QFY27 net profit guidance to S$230m-370m. We remain broadly neutral on SIA’s potential capital injection to Air India. Downgrade SIA to SELL due to a lack of near-term catalysts, with a lower target price of S$6.16.
Market Spotlight
- US stocks were lower on Tuesday. All three major indexes fell as consumer discretionary, utilities and consumer staples sectors slid. There were more decliners than advancers on both the NYSE and the Nasdaq.
- The FSSTI fell 79.38 points to 5,638.64, on the back of weakness in DBS and OCBC Bank, with both mid- and small-cap indices falling with a broad market decline on S$1.83b turnover.
Technical Analysis
Civmec (CVL SP)
- Trading Buy Range: S$1.59-1.60
Oversea-Chinese Banking Corp (OCBC SP)
- Trading Sell Range: S$31.47-31.48
Key Indices
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