Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Sept 17): AirAsia X Bhd (AAX) gained as much as 1.5 sen or 8% on bargain hunting amid positive Malaysian stock market sentiment.

Budget airline AAX reached its highest so far today at 20.5 sen. At 2.38pm, the bourse's second most active stock changed hands at 20 sen with some 43 million shares traded.

The FBM KLCI rose 33.51 points or 2% to 1,680.66 after the government announced a RM20 billion allocation for state-owned fund manager ValueCap Sdn Bhd to buy undervalued shares here.

"It's (AAX) a penny stock. Investors are looking for stocks that have been beaten down and AAX happens to be one of them.

"The stock is riding the current market euphoria. Fundamentals wise, there is no new news," an analyst told theedgemarkets.com.

AAX's latest closing share price at 19 sen compared with the company's latest reported net assets per share of 20 sen.

Over the last one year, AAX shares reached an intra-day high of 68.4 sen on Sept 17, 2014 before declining to a low at 15 sen on Aug 25, 2015.

There is no price-earnings valuation as AAX is loss-making. Net loss widened to RM132.94 million in the second quarter ended June 30, 2015 from a net loss of RM128.79 million a year earlier.

First-half net loss was higher at RM258.86 million versus a net loss of RM140.07 million.

ValueCap has been in the spotlight. According to ValueCap's website, the company is equally owned by Khazanah Nasional Bhd, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Bhd.

ValueCap operates via two subsidiaries. They are VCAP Asset Managers Sdn Bhd, a conventional fund management entity, and i-VCAP Management Sdn Bhd, which manages funds based on Islamic principles.

(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.)

 

      Print
      Text Size
      Share