Thursday 28 Mar 2024
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KUALA LUMPUR (June 17): Low-cost carrier AirAsia Bhd, which has been in the spotlight since last Friday due to concerns raised over its accounting and cash flow, extended its losses this morning, which saw its share prices plunged by another 21 sen or 12.8%.

AirAsia shares have been on the decline after Hong Kong-based GMT Research questioned AirAsia's accounting, profit generation, cash flow, leverage and group structure.

The shares of the low-cost carrier had earlier risen to a high of RM1.68 in the early trades today. However, it failed to sustain its gaining momentum, which results in its shares falling by 15 sen or 9.14% to settle at RM1.49 as at 10.39am.

With the current price, it has a market capitalisation of RM4.453 billion. Some 62.57 million shares were seen having been traded.

AirAsia (fundamental: 0.2; valuation: 1.4) was the most actively traded stock and the top loser across the exchange.

Over the week, the share price has fallen 17.68%, wiping off about RM890 million of the budget airline's market capitalisation.

The current level was the lowest since September 2010.

Shares of AirAsia had fallen about 45% this year, underperforming the FBM KLCI's 1.72% decline.

AirAsia shares declined after Hong Kong-based GMT Research questioned AirAsia's accounting, profit generation, cash flow, leverage and group structure.

AirAsia's group chief executive officer Tony Fernandes dismissed GMT's report as "garbage". Fernandes said AirAsia top executives had met institutional investors to explain the issues.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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