SIA up 8 cts after intra-day high

Singapore

SHARES in Singapore Airlines (SIA) receded from a high of S$9.78 in intra-day trading to close at S$9.69 on Wednesday, up eight cents. However, the stock has been under pressure for roughly the last one month - when it has been languishing under the S$10 mark - and is significantly lower from the S$10.34 it was trading at end-July before it reported a 71 per cent dive in net profit for Q1 FY2014/15. The counter's lowest share price in the last 12 months was S$9.20 on Feb 7, down from this year's peak of S$10.36 on June 12.

Credit Suisse has a target price of S$9.45 on the counter, said lead transport analyst (Asia Pacific) Timothy Ross, who pointed to challenges such as the threats that the group is exposed to on short-haul routes from the low-cost carriers as well as on the long-haul routes from the cash-rich, fast-expanding Gulf carriers.