Singapore Airlines halts stock trading ahead of the announcement

Singapore Airlines halts stock trading ahead of the announcement

Singapore Airlines (SIA) stopped trading its shares on the Singapore stock exchange on Thursday morning pending an announcement, a few days after grounding most of its planes and saying it was seeking refinancing to consolidate its weakened balance sheet. .

The airline on Monday said travel bans due to the raging Covid-19 pandemic worldwide and the resulting slump in flight demand represented the “biggest challenge the SIA Group has faced in its existence. “.

Tourists wearing surgical masks stroll in Singapore’s Jewel Changi Airport shopping mall on March 23, 2020. Photo: EPA-EFE

SIA shares on Monday fell to a 21-year low of $ 5.35 ($ 3.70), but on Wednesday they rose more than 10% to $ 6.50. At the start of the year, the company’s shares were trading at $ 9.11.

The last time SIA suspended trading in its shares was in 2015 on November 6, when it launched a full acquisition of the budget company Tigerair, which is now known as Scoot.

Singapore is preparing for a recession after the economy slowed more than expected in the first quarter

Singapore Finance Minister Heng Swee Keat is expected to announce off-balance sheet financial stimulus measures this afternoon to support the city’s state trade and export-dependent economy, as well as workers and families. This occurs after a previous $ 4.6 billion increase announced last month during the budget.

Last Thursday, the Ministry of Commerce and Industry downgraded its GDP forecasts for the year after the economy contracted most in a decade in the first quarter.

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