Is there substantial upside left to Qantas Airways Limited?

Team Veye | 16 Oct 2019 ASX - QAN
Is there substantial upside left to Qantas Airways Limited?

Qantas Airways Limited (ASX: QAN)

Update on the Level of Foreign Relevant Interest in Qantas Shares

Qantas Airways Limited (ASX: QAN) on 14 October 2019 announced that, on the basis of its most recent foreign ownership reconciliation, Qantas is again in a position to qualify for inclusion in the MSCI Global Investable Market Indexes (“MSCI Index”). As of 03 September 2019, foreign persons potentially held relevant interests of 35.78% in the issued share capital of Qantas. On that basis, under section of the Methodology, August 2019 for the MSCI Index, Qantas meets the MSCI requirement of a foreign room of at least 25%. 

(Chart source: TradingView)

In accordance with ASX Listing Rule 3.19.2, market participants should be aware that:

  • Under the Qantas Constitution, within 10 days of becoming registered, foreign purchasers are required to notify Qantas of their acquisition of relevant interests in Qantas shares. 
  • It is the order of receipt of validly completed FONs that determines the priority for entry, upon reconciliation to a registered shareholding, to the Qantas Foreign Sub-Register and failure to submit a FON may mean failure to secure priority;
  • Qantas investigates foreign share purchases and, upon reconciliation of the relevant FONs to a registered shareholding, enters the purchases on the Qantas Foreign Sub-Register. (Data Source – Company Reports)


Veye’s Take

Qantas Airways will begin testing the longest direct flights in the world soon, as the Australian airline aims to use technological innovation in a bid to woo premium passengers. Singapore-based Jetstar Asia has entered into an agreement with Qantas Freight to manage the low-cost carrier's freight capacity beginning Nov. 20. Qantas has agreed to manage Jetstar Asia's cargo capacity across 23 stations in 13 markets. Jetstar operates 18 A320 aircraft, carrying belly-hold cargo. The Australian-flag carrier holds a 49% stake in Jetstar Asia. The chart is indicating the further move up with moving averages cross over taking place. Veye maintains a "Hold" on “Qantas Airways Ltd” at the current price of $6.69


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