KUALA LUMPUR (Dec 16): RHB Research has upgraded the aviation sector to “Overweight” from Neutral and said the slump in oil prices would benefit the aviation sector.
In a note Tuesday, the research house said while it does not see demand growing strongly, sector earnings will be underpinned by yield recovery, with an additional positive impact from lower jet fuel prices.
“As such, we upgrade the sector to Overweight from Neutral.
“AirAsia Bhd is our Top Pick for the Malaysian aviation sector. AirAsia X Bhd remains a Sell as losses will continue into FY15,” it said.
At 10am, AirAsia rose 0.36% or one sent to RM2.81 with 1.37 million shares done while AirAsia X fell 0.73% or half a sen to 68 sen with 969,300 shares traded.