KUALA LUMPUR (Aug 14): IHH Healthcare Bhd and Malaysia Airports Holdings Bhd (MAHB) shares continued to decline as investors remained cautious of the companies' exposure in Turkey amid the lira's depreciation.
At Bursa Malaysia, MAHB shares dipped three sen to RM9.30 at 10:10am. At 10:18am, IHH fell seven sen to RM5.38.
Both stocks' declines today were a continuation from yesterday's drop. Yesterday, MAHB shares fell 53 sen or 5.38% to close at RM9.33 while IHH slid 30 sen or 5.22% to RM5.45.
MAHB together with its consortium partners Limak Group and GMR Infrastructure Ltd operate the Istanbul Sabiha Gokcen International Airport, while IHH owns 60% of the Turkey-based Acibadem integrated healthcare chain, MAHB and IHH's websites indicate.
Today, Rakuten Trade Sdn Bhd wrote in a note on IHH shares: "Recent drop due to cautious sentiment on its hospital business exposure in Turkey. Stock is oversold and may stage a technical rebound."
The Turkish lira depreciation has dampened world market sentiment. Reuters reported that a renewed rout in the Turkish lira drove demand for safe harbours, including the US dollar, Swiss franc and yen. It was reported that the lira depreciated largely over worries about Turkey President Tayyip Erdogan's influence over the economy, his repeated calls for lower interest rates in the face of high inflation and worsening ties with the US.
The lira slipped 0.6% in early Asian trade on Tuesday to 6.955 per dollar, though it hovered above a record low of 7.24 hit on Monday after the central bank pledged to provide liquidity.