SIA Engineering

Listed since 12 May 2000 on SGX Mainboard, SIA Engineering Company Ltd core businesses are the maintenance, repair and overhaul services to air carriers.
SIA Engg is one of the hottest stocks among the institutional investors by virtue of its capital restructuring potential and of late, the speculation that it may well be divested by SIA as being a non-core business unit to its parent company after a meeting between MM Lee Kuan Yew and the SIA management. MM Lee urged SIA to be more competitive and concentrate on its core biz as a premium airline. There is even talks of it being merged with ST Engg which the latter promptly refuted.

Technically, SIA Engineering's price consolidated back to the 3.50s region after going ex-dividend. If it hold up well above 3.50, next target for a rebound is 3.64 followed by 3.78. RSI remains below the 20% oversold mark and it could be a matter of days before it breaks up. Look to the upwards sloping price trendline for likely retracement's direction following a breakout of the rsi.

Recently a member of parliament cited that Minister Mentor Lee Kuan Yew's public comments on the need for SIA to divest its stake in SIA Engineering Company and SATS was an example of government's continued involvement in GLCs. He then suggested that the government found it difficult to take a "hands-off approach" because our GLCs are still in need of guidance from visionaries like MM Lee. Hmm, makes one wonder if he would be as visionary in the stock market..