SINGAPORE (Feb 7): Amid the increasing spread of the novel coronavirus, shares of Singapore Airlines (SIA) are trading at a decade-low. The national flag carrier fell 5.4% year-to-date to close at $8.55 on Feb 4, or 14.6 and 0.9 times earnings and book value, respectively. At that price level, the stock is approaching its 2009 low of $8.21 in the wake of the global financial crisis. The counter is also now trading closer to its 2003 low of $7.78 during the outbreak of SARS.
The drop in the SIA share price is hardly surprising at all. China first imposed restrictions on outbound group travel on Jan 27. Then, on Feb 1, Singapore put in place restrictions on the arrival of all China passport holders and foreigners from China.
