Singapore Airlines drops most in one year

BLOOMBERG

Singapore Airlines Ltd slumped the most in more than a year after a block of shares amounting to nearly 3% of the float traded on June 30.
Singapore state-owned investment firm Temasek Holdings Pte had earlier offered to sell the same number of shares, according to terms of the deal seen by Bloomberg. The carrier closed down 4.7% at S$7.15, the largest decline since February 2022. The slide trims this year’s gain to 29%, from as much as 46% when it reached its intraday high for the year of S$8.05 two weeks ago.
The proportion of analysts who have a sell rating on the shares has increased to 39% this month from 25% at the end of May, signalling the carrier is overpriced. The shares are still trading about 8% above the consensus 12-month target of analysts, according to data compiled by Bloomberg.
“Temasek executing this block trade is suggesting that the stock is trading at a premium,” said Jason Sum, an analyst at DBS Bank Ltd in Singapore. The investor is looking to re-balance its portfolio by offloading some shares, he said.
Morgan Stanley downgraded the stock to equal weight from overweight in mid-June, saying the strong fundamentals that led to its peer-beating rally have “played out.”