SIA and SATS sink ~6% after Iran strikes prompt flight cancellations; Spotlight on 5x Long and Short DLCs
Asian markets mostly declined on Monday (2 March) as rising tensions in the Middle East rattled global sentiment, prompting investors to reduce risk exposure and shift into safe‑haven assets.
This came after the US and Israel jointly-launched strikes in Iran over the weekend. The heightened uncertainty also led to flight cancellations to the region, weighing on airline and aviation‑related stocks.
$SIA(C6L.SI)$ dropped as much as 6.4% shortly after market open, following the cancellation of 26 SIA and Scoot flights to and from Middle Eastern destinations such as Dubai.
Tracking the underlying stock, $SIA 5xShortSG270427(ZDBW.SI)$ rose by 32% while the $SIA 5xLongSG280516(FHOW.SI)$ suffered losses of a similar magnitude.
The cancellations also pushed $SATS(S58.SI)$ lower by roughly 5% in early morning trading, with the $SATS 5xLongSG260716(DQXW.SI)$ declining around 25%.
Investors anticipating further downside or looking to hedge their existing stock holdings may consider using our Short DLCs to capture potential opportunities.
Conversely, those expecting a market rebound due to possible overreaction may look to benefit from any recovery by using the Long DLCs.
View the full list of DLCs on dlc.socgen.com
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