CHINA AIRLINES STOCK RISES AS CARRIER REPORTS HIGHER PROFIT
Shares of China Airlines (CAL), one of Taiwan's leading international carriers, continued to rise Monday from the previous session, attracting buying after the company reported a second-quarter profit despite the impact of the COVID-19 pandemic on the global air transportation industry, the Central News Agency (CNA) reported late on August 10, 2020.
Investors also bought other stocks in the local transportation sector, focusing on the country's other major carrier EVA Airways (EVA Air), although the airline has not yet released its second quarter results, dealers said.
CAL shares rose 4.61 percent to close at NT$8.39 (US$0.29), with 46.12 million shares changing hands on the Taiwan Stock Exchange, where the weighted index ended up 0.51 percent at 12,894.00. Soon after the market opened, CAL attracted strong follow-up buying from the previous session, when its shares closed up 3.08 percent, dealers said.
The buying extended to EVA Air, which gained 3.73 percent to end at NT$11.11, while the transportation sector closed up 3.61 percent. For the April-June period, CAL posted NT$2.46 billion in net profit, or NT$0.45 in earnings per share (EPS), at a time when many carriers reported heavy losses due to border controls amid the COVID-19 pandemic. CAL's second-quarter results were a strong comeback from it net loss of NT$3.77 billion and loss per share of NT$0.69 in the first quarter.