File photo used for representation
Singapore Airlines Ltd. slid as much as 5.2%, the biggest intraday decline in more than a year, after a block of shares amounting to nearly 3% of the float traded Friday.
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 on Wednesday.
The carrier fell to as low as S$7.11 Friday, suffering its largest decline since February 2022 and further trimming a rally that had seen it gain as much as 46% this year to an intraday high of S$8.05 in mid-June.
The proportion of analysts who have a sell rating on the shares has increased to 39% this month from 25%, signaling 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 at recapitalization and offloading some shares,” he said.
Morgan Stanley in mid-June downgraded the stock to equal weight from overweight, saying the strong fundamentals that led to its peer-beating rally have "played out.”
