AirAsia up as CIMB sees airline gaining from stronger ringgit

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KUALA LUMPUR (Feb 7): AirAsia Bhd shares rose 17 sen or 4% as the Malaysian stock market recovered and after analysts said the budget airline is expected to gain from a stronger ringgit.

At 12:30pm, AirAsia shares settled at RM4.18 while the FBM KLCI rose 26.76 points to settle at 1,839.21 points.

CIMB Investment Bank Bhd wrote in a recent note: "We have identified auto, airlines and F&B players as the biggest winners should the ringgit continue to strengthen, due to their lower operating costs. Our top picks for the stronger ringgit theme are AirAsia, Berjaya Food Bhd and DRB-Hicom Bhd.

Today, the KLCI recovered after falling 40.62 points yesterday to 1,812.45 points. The KLCI fell yesterday with global equities amid higher US bond yield and US interest rate hike concerns.

In currency markets today, the ringgit was traded at 3.9080 against the US dollar at the time of writing. Over the last one year, the exchange rate was between 3.8663 and 4.4618.