Is this the beginning of the end for SIA share price? Amid the global coronavirus outbreak, SIA share price plummeted to new lows not seen even during the SARS period in 2003. During the SARS period, SIA had also cut flight capacity and put staff on no-pay leave. Even so, SIA share price did not drop below $8.00. Given that the number of Covid-19 infections have yet to peak, how low will SIA share price go?
In a reminder of how dreadful the situation is, Singapore budget airline, Jetstar Asia had grounded its entire fleet while Singapore Airlines cuts capacity by half. At Price/Book Value of just 0.65, SIA share price is currently trading way below its book value. But before you go bargain hunting, beware of catching a falling knife.
Amazingly, during the SARS of 2003,