Hot stock: Singapore Airlines falls 5.2% on heavy trading after Temasek share sale

SHARES of Singapore Airlines (SIA) fell as much as 5.2 per cent amid heavy trading following a news report that major shareholder Temasek sold a 1.85 per cent stake in the national carrier.

SIA’s shares fell right at the market open on Friday (Jun 30) to a three-week low of S$7.11. By 9.30 am, the counter was down 4.3 per cent or S$0.32 to S$7.18. With 64.5 million shares having changed hands, it was the heaviest-traded counter on the Singapore bourse. 

Following the share price fall, Temasek reiterated its commitment to SIA. “As an active investor, we regularly reshape and rebalance our portfolio to deliver sustainable returns over the long term. We are committed to the long-term success of SIA and continue to maintain a majority stake in it,” said Juliet Teo, Temasek’s head of transportation and logistics, in a statement to The Business Times.

On Wednesday, Reuters reported that Temasek was selling S$400 million worth of SIA shares, which translated to a 1.85 per cent stake; the aim was to rebalance its portfolio and “deliver sustainable returns over the long term”. 

It will continue to be SIA’s major shareholder with a 53.5 per cent stake following the sale, the news outlet calculated. Citi, the sole bookrunner on the share sale, had declined comment.