The arguably exciting shares of Tiger Airways have finally seen the first day of trading. It's one of the top 5 most traded counter & closed at $1.58 after hitting intra-day high of $1.61 & touching down the low of $1.49.
The jump may be barely 8 cents, but still it's a positive amidst the bloodbath of the general market.
I sound as if I may be interested to try on my hands on this shares. But with the recent news of Japan Airlines bankruptcy, I do not think it's wise to jump to the crowd.
And anyway there are still a lot of study need to be done with regards to the financial performance of Tiger Airways.
Shares of budget carrier Tiger Airways took off smoothly and scaled higher on its trading debut in the Singapore Exchange (SGX) on Friday.
The stock rose 5.3 per cent above its offer price of S$1.50 to end the trading day at S$1.58.
It is also the fifth most heavily traded counter with some 93.6 million shares changing hands.
The counter went through patches of turbulence during its ascent with the stock hitting a low of S$1.49 during intra-day trading before picking up to hit as high as S$1.61.
Yet some profit taking just before market close caused the counter to level off at the S$1.58 closing price.
In a press release, Tony Davis, chief executive officer of Tiger Airways said: "We are proud to be the first low cost airline to list on the SGX-ST and would like to welcome all our new shareholders as we embark on our new journey as a listed company.”
Despite Tiger's steady showing, some sceptical analysts believe that the stock's closing price is just an effect of short-term market reaction and is unlikely to be sustainable.
Aviation consultant Prithpal Singh said he does not believe the low-cost carrier will be able to sustain its current share price.
"Even though they have painted a very rosy picture, I don't expect them to be able to perform according to what they said they will. My own estimation is that it will probably fall to below a dollar in the near-term," he said.
Meanwhile, some traders believe that Tiger's share price could have climbed even higher if not for the weak sentiment in the broader market.
"Tiger's showing was muted by the overall weakness in Asian markets following the overnight drop in Wall Street," said a dealer from a local brokerage firm.
Regional markets tumbled yesterday in the aftermath of US President Barack Obama's proposal to limit trading activities of Wall Street banks to lessen financial risks.
The key Straits Times Index (STI) fell 1.1 per cent or 31.27 per cent to close at 2,819.17 points.
While the jury is still out on Tiger's share price prospects, dealers said that they are encouraged by its performance as the airline's higher closing has set a positive tone to the IPO market this year since Tiger is the first IPO to be listed in SGX this year.
From Channel NewsAsia, "Tiger Airways shares scaled higher on trading debut".
