$SIA (C6L.SG)$ : I may be wrong, but just feel like expressi...
$SIA (C6L.SG)$ : I may be wrong, but just feel like expressing my thoughts.
Looking at the US indexes around 1995, DJI was around 4,000 and early this year it is more than 36,500.
The Straits Times Index was just above 1,200 in the year 2003, and today STI is at 3,240 level.
In Oct 2007, SIA touches $20 and was range trade around $10 area before grounded by Covid-19 around Feb 2020.
Therefore, if the Fed hike rate, the US market will have more room for correction then STI and SIA.
STI maybe slightly affected, but SIA may rally a bit due to the opening up of the travel industry, lifting of the VTL, no quarantine for the vaccinated travellers.
Yes, high oil price may eat up SIA profit, however, its management team already had their oil price hedge below US$90 before the oil price spikes up.
Next, is the rate hike. Knowing that the rate hike is coming, its management had also hedge out the risk.
The Singapore Gov is also seen putting a lot of effort to support its Flag Carrier.
Looking at the US indexes around 1995, DJI was around 4,000 and early this year it is more than 36,500.
The Straits Times Index was just above 1,200 in the year 2003, and today STI is at 3,240 level.
In Oct 2007, SIA touches $20 and was range trade around $10 area before grounded by Covid-19 around Feb 2020.
Therefore, if the Fed hike rate, the US market will have more room for correction then STI and SIA.
STI maybe slightly affected, but SIA may rally a bit due to the opening up of the travel industry, lifting of the VTL, no quarantine for the vaccinated travellers.
Yes, high oil price may eat up SIA profit, however, its management team already had their oil price hedge below US$90 before the oil price spikes up.
Next, is the rate hike. Knowing that the rate hike is coming, its management had also hedge out the risk.
The Singapore Gov is also seen putting a lot of effort to support its Flag Carrier.
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101694382 : The hedging is just a portion, not even majority of it. I don't think Sia going to be very badly affected but some downside is not improbable if the war protracts or expands. still have continued sanctions against russia.
Meng PaPa OP 101694382 : Thank you for correcting me.
Yes, oil price is a major concern for everybody throughout the whole world, even without Russian Ukraine war. Its even worse with the war. The world have to seriously consider nuclear energy and hydrogen aircraft even though it's very life threatening.