SIA - Disposal

On 7 Jun 13, I wrote that I had bought SIA equity. I finally sold the equity on 11 May 16, about 3 years of holding, for a profit of approximately S$1200. I sold it at a price of S$11.59/share. There was a price hike on 11 May 16 as a result of outstanding financial performance in the last quarter. In its last quarter, profit was $224.7 Million. Reason cited was lowered global fuel price.

However, just 2 days later, on 13 May 16, the price of SIA equity plunged to S$11.00. This was because of investors fear on the intense competition from middle east airliners, such as Etihad and Qatar Airways. Within a time span of 2 days, investors' sentiments could change from bullish to bearish.

This reinforces my view that local equities generally perform cyclically. It is important to be content with the gain and exit when there is sudden exuberant on the performance.

Will I be interested in SIA? Possibility, if the price is right. Currently, the global market sentiment is not overly bullish and China is in bear territory. Hence, equity prices are going to be softening.

SIA dividend is between 2% to 3% annually depending on the company performance and the purchased price. SIA had announced a final dividend of 35 cents per share which is higher than average. Expecting a jump in share price prior to its book closing date.