KUALA LUMPUR (July 9): Shares of AirAsia Bhd and AirAsia X Bhd tanked in active trade this morning on investor worries that the low-cost carrier’s Jakarta-based affiliate may be shut down if it does not meet a government-set deadline to raise funds.
At 9.31am, AirAsia lost 3.85% or five sen to RM1.25 with 14.53 million shares done while AirAsia X lost 5% or 1 sento 19 sen with 3.25 million shares done.
AllianceDBS Research said the RM1.25 support remains intact for AirAsia and that AirAsia had on July 8 broken the RM1.43 support to reach the lowest low of RM1.26 since July 7, 2010 before closing off the day’s low at RM1.30 (down 19 sen or 12.7%).
In its evening edition yesterday, the research house said AirAsia continued to trade below the 20-day and 50-day moving average lines.
“Given the downside breakout of RM1.43 support with a weak down close on July 8, the stock is expected to move lower again with immediate support seen at RM1.25.
“A fall below RM1.25 would put pressure on the stock down to the subsequent support zone, RM1.00 – RM1.10.
“The hurdle is at RM1.43. A rise above RM1.43 should see further price rise to the next overhead resistance at RM1.71,” it said.
AllianceDBS Research said stock volume traded on July 8 was 144.6 million shares compared to the 3-month average volume of 16.1 million shares.
The research house said that indicators wise, the MACD was below the 9-day moving average line with the sell signal remains intact.
It said the relative strength index indicated that the stock was currently in the oversold zone.