Comair Surges After Rival Grounds Planes: Johannesburg Mover
Comair Ltd. (COM), which operates two South African airlines, climbed the most in more than six months after low-cost flier and rival carrier 1Time Holdings Ltd. (1TM) grounded its planes and filed for bankruptcy.
Johannesburg-based Comair rose 10.3 percent to 1.60 rand by 3:42 p.m. in Johannesburg after increasing as much as 17.2 percent, or the most in more than a year, earlier today. About 2.8 million shares changed hands, or 18 times the daily average over the past three months.
“Investors are speculating that Kulula.com and British Airways (IAG) stand to benefit from 1Time’s closure,” Ryan Wibberley, an equity trader at Investec Asset Management, said by phone from Cape Town. Comair is the owner of Kulula.com and the South Africa franchise operator for British Airways, part of International Consolidated Airlines Group SA.
1Time, which owned a low-cost flier and a technical maintenance company, was placed under business rescue proceedings on Aug. 21 and filed for liquidation on Nov. 2. Its shares were suspended today.
Comair’s 30-day historical volatility, a measure of stock swings, increased to 50.71 from 42.12 the previous trading day. The FTSE/JSE Africa All Share Index’s 30-day volatility measure was at 11.27 against 11.33 the previous day. A higher reading means the price of an asset may move dramatically in a short period.
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