SK Hynix could get a valuation boost from listing American depositary receipts this year, Mirae Asset Securities' Kim Young-gun said. The South Korean chip maker's ADR listing could highlight a valuation gap with its locally traded shares, potentially lifting the stock's valuation, the analyst wrote in a note.
SK Hynix could get a valuation boost from listing American depositary receipts this year, Mirae Asset Securities' Kim Young-gun said. The South Korean chip maker's ADR listing could highlight a valuation gap with its locally traded shares, potentially lifting the stock's valuation, the analyst wrote in a note.
Airlines are said to be delaying taking out new jet fuel hedges in the hope that prices will fall in the coming months, in a bet on a swift resolution to the Iran war that leaves them potentially exposed to further increases. European airlines have hedged about 80% of the fuel they need for this year and typically take out new hedges on a rolling basis to lock in future prices. However, after the ...
Airlines are said to be delaying taking out new jet fuel hedges in the hope that prices will fall in the coming months, in a bet on a swift resolution to the Iran war that leaves them potentially exposed to further increases. European airlines have hedged about 80% of the fuel they need for this year and typically take out new hedges on a rolling basis to lock in future prices. However, after the price of jet fuel doubled following the start of the Iran war three weeks ago, some carriers have paused any new financial contracts, the Financial Times reported. “I don’t think we’ll do any hedging for the next three months,” Ryanair ( RYAAY ) group chief executive Michael O’Leary told the FT. “We would always vary a little bit if we thought there’s a short-term [jump] — clearly nobody’s doing any hedging now with these kind of rates.” The price of jet fuel has risen to $180 a barrel, while the gap with Brent crude ( CO1:COM ) has also widened as the conflict drags on. About 40% of the world’s jet fuel passes through the Strait of Hormuz. There is a “significant flow from Kuwait, Saudi, Abu Dhabi that is trapped on the wrong side of the straits”, one former fuel trader said, according to the report. China, which was one of the largest providers of jet fuel, has also halted exports. Nevertheless, the markets are forecasting a fall in prices over the year. O’Leary said long-term prices for jet fuel in summer 2027 were still $75 to $80 a barrel: “We’d be greedy and wait until hopefully we can get under $70.” Lufthansa ( DLAKF ) also said it has paused hedging since the conflict began, and like many of its European rivals, the German carrier said it had locked in about 80% of its fuel costs for this year “at pre-crisis levels”. Traders expect the prices of both oil and jet fuel to fall in the coming months, giving airlines hope they can lock in lower rates by being patient. EasyJet ( EJTTF ) chief executive Kenton Jarvis said “fuel is spiking at the moment, but the view of th...