SIA

SIA: May extend yesterday's 2% fall on its latest data showing declines in both passenger and cargo load factors for Nov. The overall load factor last month was 70.1% vs 72.3%YoY and 71.1% in Oct, mainly due to capacity increasing faster than passenger and cargo traffic growth….

Analysts however noted that load factors in Dec may turn out better if demand during the yr-end holiday season catches up with the carrier's additional capacity. RBS however remains skeptical, noting that with demand growth for most airlines tapering off, concerned that SIA will be bringing back flights at a time when the fight for market share will likely intensify….

Citi meanwhile maintains their $16 TP on stock, based on 1.32x P/B, above mid-cycle P/B of 1.2x. Note that stock deserves to trade above mid-cycle P/B as ROE projection of 10.3% lies above the mid-cycle ROE of 9.3%. Immediate support at Nov's $15.34 low & Aug trough of $15.06.