Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 29): Shares of airport operator Malaysia Airports Holdings Bhd (MAHB) fell 2% in morning trade on Monday, which analysts attributed to negative sentiment over the missing AirAsia Indonesia flight QZ8501.

MAHB’s share price went down 2.06% or 14 sen to RM 6.66. The share price went to a low of RM6.58 before climbing up to RM6.66 as at 11.29am.

However, trading volume was rather thin with only 27,200 units changing hands.

An analyst with a bank-backed research house said that the minor loss of MAHB could be due to stirred sentiment over the aviation sector following the disappearance of Air Asia plane QZ8501 from Surabaya to Singapore yesterday.

The plane, with 155 passengers on board, was expected to land at 8.30am Sunday, but lost contact with air traffic control at 7.24am Surabaya local time.

The analyst said he believed investors were concerned about the monsoon season and its impact on the safety of planes.

However, he believed investor sentiment stirred by aviation incidents would not dampen passenger growth for MAHB next year.

“As it is, even with one blemish on its record, Air Asia is still deemed the safest carrier in Indonesia. Looking at the average fleet profile, Air Asia is still considered young. It will recover eventually. Passenger growth will grow higher next year,” He said.

Another analyst also concurred that jitters over the plane's disappearance could cause MAHB's slide on thin trade this morning

“Let’s wait a little bit longer to see the major reaction,” he said.

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