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Singapore Airlines down after going ex-div, weaker Q1 earnings

2-Aug-2005

SINGAPORE (XFNews) - Singapore Airlines was lower after the stock went ex-dividend today, dealers said.

SIA was down 0.20 sgd or 1.68 pct at 11.70 on volume of 156,000 shares.

Investors buying the stock today are no longer eligible to receive the 0.30 sgd per share dividend the company is paying on August 15 to shareholders.

SIA's shares also reeled from the flag carrier's weak quarterly results. The airline's first quarter to June net profit fell 7.9 pct year-on-year to 235 mln sgd as the national carrier incurred higher costs largely due to dearer fuel charges, within market expectations.

The airline said its expenditure bill climbed 15 pct to 2.79 mln sgd, largely on the back of rising fuel costs.

"These results are unlikely to excite the market in the short run," UBS Investment Research said in a note.

"However, we remain of the view that SIA is well positioned to cope with high oil," it said.

UBS is keeping its "buy 2" rating on SIA, with a target price of 14.50 sgd.


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