It was hovering around $9.40 to $9.60 for a long while but in the last 2 weeks, it has been steadily climbing. It closed at $10.07 yesterday up 17 cents. Today it is down 1 cent to $10.06 (it's taking a breather) . Do you know why it is going up? The answer is simple: SIA is buying back its own shares. You may ask how on earth did I know about it? Well, it is just my guess (must admit I am not an expert on the matter).
Possible reasons why a company buy back its own shares:
- It feels the share price is cheap
- It is supporting the price and ensure it does not go below a certain level
- It is going to make more profits
- It has a lot of cash in hand
We will see whether I am right or wrong in the coming weeks. My prediction is, with the buying spree and the declining oil prices we may see it going up to around $12 soon.