Friday, August 12, 2011

AirAsia still in turbulent territory

KUALA LUMPUR: AIRASIA BHD [] shares extended their losses in active traded at mid-morning on Friday, Aug 12 as investors still appeared to view its tie-up with national carrier MALAYSIAN AIRLINE SYSTEM BHD [] as not entirely beneficial to the low cost carrier.

At 10.40am, AirAsia fell five sen to RM3.45 with 12.46 million shares traded.

UOB Kay Hian Malaysia Research on Aug 10 had downgraded AirAsia to a Sell with a lower target price of RM3.50 from RM4.60.

The research house said that while an alliance between AirAsia and MAS would benefit Khazanah Nasional Bhd, it did not see AirAsia getting any benefit.

Under the Aug 9 collaboration, Khazanah Nasional Bhd, which owns 69.5% in MAS, will take up a 10% of shares in AirAsia while Tune Air Sdn Bhd, which owns some 23% in AirAsia will hold 20.5% shares in MAS.

Meanwhile, MAS was up six sen to RM1.86 with 11.11 million shares done.

MAS had yesterday announced the appointments of Tan Sri Anthony Francis Fernandes and Datuk Kamarudin Meranun ''as its directors.

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