SIA's rights shares, MCBs to hit market on a tailwind of positive sentiment

Minority shareholders of SIA are about to discover if they were right to shun its rights issue of MCBs

Ben Paul

Published Sun, Jun 7, 2020 · 09:50 PM

THIS week, shareholders of Singapore Airlines (SIA) will be able to begin trading their rights shares and 10-year mandatory convertible bonds (MCBs). And, by the looks of things, they should enjoy a strong tailwind of positive sentiment.

Markets around the world are in a sweet spot of sorts, buoyed by massive stimulus and news of economic activity re-starting. In particular, the United States Bureau of Labor Statistics said on Friday that the world's biggest economy regained some 2.5 million jobs in May.

This marked a sharp turnaround from April, when the US lost some 20.5 million jobs, and suggests that economic activity is recovering faster than expected.

The S&P 500 rose nearly 5 per cent last week, and it is now only one per cent below where it was at the beginning of the year. Among the biggest gainers du…