NY-listed LCCs strengthen; Virgin Blue upgraded
LCCs ended mixed on Wednesday 17-Nov-2010 after a choppy day's trade across most major markets. NY-listed LCCs edged higher while those in the Asia Pacific region ended lower. Lingering concerns about news out of Ireland and China is keeping investors cautious.
Allegiant (+3.1%), Ryanair (+2.2%), GOL (2.1%) and JetBlue (+1.1%) all finished higher for the day, broadly tracking the ARCA Airline Index, which gained 0.37%.
Virgin Blue and Cebu Air fall on upgrade
Brisbane-based Virgin Blue Holdings Ltd was upgraded to "buy" from "hold" by RBS. Virgin fell with the wider Australian market, shedding 1.1% to AUD0.435 cents.
Cebu Air was rated "buy" with a 12-month share price estimate of PHP160 by Citigroup. JPMorgan has assigned the stock an "overweight" rating with a price estimate of PHP145. Cebu fell 3.2% yesterday to PHP120.10.
SpiceJet falls 4.2%
India's SpiceJet was the day's sharpest loser, falling 4.2%. The carrier has recently announced a major reshuffle of senior management following Kalanithi Maran's acquisition of 38% of the airline's stock. Mr Maran is the LCC's chairman.
Selected LCCs daily share price movements (% change): 17-Nov-2010