Boeing shares close lower on Thursday, UAE’s civil aviation authority specifies no time frame for lifting of 737 MAX ban

May 10, 2019 9:56 am

According to a report by the United Arab Emirates’ news agency, WAM, the country’s General Civil Aviation Authority cannot say with certainty when the ban on Boeing’s globally grounded 737 MAX aircraft will be lifted.

Boeing shares closed lower for the eighth time in the past twelve trading sessions in New York on Thursday. The stock went down 1.56% ($5.62) to $354.13, after touching an intraday low at $347.43, or a price level not seen since January 14th ($347.01).

Shares of Boeing Company have surged 9.81% so far in 2019 compared with a 14.52% gain for the benchmark index, S&P 500 (SPX).

In 2018, Boeing’s stock went up 9.36%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

“The GCAA (General Civil Aviation Authority) team recently participated in Joint Authorities Technical Review team meetings which has been formed to look into Flight Control System of B737-8 Max,” the regulator said in a statement, cited by Reuters.

Two months ago, Ethiopian Airlines Flight 302 crashed shortly after the jet took off in a rural region southeast of Addis Ababa, which led to the deaths of all 149 passengers and 8 crew members on board. The flight was operated on the same Boeing model, 737 MAX 8, which crashed in the Java Sea last October, killing all 189 people on board.

After the two incidents, the General Civil Aviation Authority issued a Safety Decision, prohibiting the operation of all Boeing 737 MAX models in the United Arab Emirates’ airspace, effective March 13th.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $434.50, with a high estimate of $505.00 and a low estimate of $367.00. The median estimate represents a 22.70% upside compared to the closing price of $354.13 on May 9th.

The same media also reported that 15 out of 25 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 7 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:

Central Pivot Point – $378.35
R1 – $383.41
R2 – $390.35
R3 – $395.41
R4 – $400.46

S1 – $371.41
S2 – $366.35
S3 – $359.41
S4 – $352.46

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