AirAsia shares bat­tle back af­ter se­ries of falls over past week

The China Post - - MARKETS -

Shares in Malaysia-based AirAsia re­bounded more than 8 per­cent on Thurs­day fol­low­ing pre­cip­i­tous falls over the past week sparked by a crit­i­cal re­port by a re­search house.

Hong Kong-based GMT Re­search had on June 10 ques­tioned the ac- count­ing prac­tices, profit out­look, cash flow and struc­ture of Asia’s big­gest low-cost air­line by fleet size.

From June 9 through the end of trad­ing on Wed­nes­day, the com­pany’s mar­ket cap­i­tal­iza­tion had de­clined by around 1.58 bil­lion ring­git (US$420 mil­lion), or about 27 per­cent.

AirAsia group boss Tony Fer­nan­des ear­lier this week hit out at the re­port by a GMT Re­search an­a­lyst.

An­a­lysts cov­er­ing AirAsia, while not­ing that the car­rier faces a tough busi­ness en­vi­ron­ment in the re­gional low-cost sec­tor it has helped to pi­o­neer, have said the GMT Re- search re­port raised no new is­sues.

The stock rose 8.50 per­cent in the early af­ter­noon to 1.66 ring­git (US$0.44).

From June 9 through the end of trad­ing on Wed­nes­day, the com­pany’s mar­ket cap­i­tal­iza­tion had de­clined by around 1.58 bil­lion ring­git (US$420 mil­lion), or about 27 per­cent.

Shukor called it a buy­ing op­por­tu­nity.

AirAsia Malaysia CEO Aireen Omar has taken ad­van­tage, buy­ing 45,000 shares worth 78,300 ring­git (US$20,841) in re­cent days, ac­cord­ing to a stock ex­change fil­ing on Wed­nes­day.

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