Singapore Airlines (SIA) stock surged 7.01% in early trading on Thursday, marking a significant upward movement for the national carrier. The sharp increase comes on the heels of the company's announcement of a substantial share buyback program.
According to the latest market update, SIA repurchased 522,500 of its own shares on Wednesday at a price range of S$5.91 to S$6.05 per share. The total consideration for this buyback amounted to S$3.1 million. This move is part of a larger share buyback authorization, which allows the company to repurchase up to 148.9 million shares.
Market analysts view this share buyback as a strong signal of the company's confidence in its financial position and future prospects. The move is likely to be well-received by investors, potentially driving further interest in SIA stock. As the aviation industry continues to recover from the impacts of the global pandemic, SIA's proactive approach to managing its share capital could position it favorably in the eyes of both institutional and retail investors.
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