EVA and China Airlines stock surges; Chinese stocks rebound from four-day plunge
EVA Airways surged by the 6.9% daily limit to TWD32.70 yesterday while China Airlines shares gained 4.7% to TWD23.30 with Yuanta Securities commenting that recent oil price declines may be beneficial for the company’s margins. Oil prices have fallen 4.8% this week.
China stocks rebound from four-day plunge
China’s stocks rose yesterday, rebounding from a four-day, 9% plunge that left shares trading at the cheapest in five weeks. Air China rose the most in two weeks in Shanghai trading, leading an advance for airlines on prospects for a stronger yuan. In Hong Kong, China Eastern shares gained 6.5% with Air China up 4.0% and China Southern shares 2.4% stronger.
Credit Suisse Group AG stated investors should buy A-shares and short-sell H-shares of some dual-listed company in China, stating that mainland China-listed A shares of some companies are undervalued compared with their Hong Kong-listed H share prices. The analysts named 10 dual-listed companies, including China Eastern Airlines Corp, that support this assertion.
Virgin Blue stock upgraded by RBS
Virgin Blue Holdings Ltd had had its stock rating raised from “hold” to “buy” by Royal Bank of Scotland Group Plc. Shares gained 3.5% yesterday.
Cebu Pacific shares gained 4.5% yesterday with the company one of the leaders of a 1.3% rebound on the Philippine Stock Exchange.
Asia Pacific selected airlines daily share price movements (% change): 18-Nov-2010