Thursday 28 Mar 2024
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KUALA LUMPUR (March 2): AirAsia Bhd shares fell with the broader market after the stock rose as much as 15 sen or 3% to RM4.75. The stock had earlier risen on expectation of special dividends after the budget airline said it is divesting its aircraft leasing operations for US$1.185 billion (approximately RM4.62 billion).

At 9:39am, AirAsia shares fell two sen to RM4.58 with some five million units transacted. The stock was traded between RM4.75 and RM4.50 so far today. 

At 10:01am, the FBM KLCI dropped 2.63 points to 1,858.23 with world shares after US President Donald Trump said the US will impose import taxes on steel and aluminum to protect US manufacturers.

On AirAsia, CIMB Investment Bank Bhd wrote in a note today that "after taking into account (AirAsia's) debt prepayment and costs, we estimate a special DPS (dividend per share) of only 75 sen may be paid, below our previous estimate of 84 sen."

"We maintain Add, and raise our target price to RM5.31 (from RM5.12), as we increase our CY19F target P/E multiple to 12x (from 10x) on account of the steep fall in net gearing," CIMB said.

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