MAHB plunges 6% after Malaysia announces PSC cut

-A +A

KUALA LUMPUR (Aug 30): Malaysia Airports Holdings Bhd's (MAHB) share price fell as much as 50 sen or 5.85% to RM8.05 in afternoon trades today on news the government will reduce the passenger service charge (PSC) for international travellers flying beyond Asean from klia2 and other airports besides the Kuala Lumpur International Airport (KLIA) to RM50, from RM73 previously, from October.

At 4:17pm today, the counter pared losses at RM8.18 to become Bursa Malaysia's top decliner. The stock saw some five million shares traded as investors evaluated the impact of the lower PSC on the airport operator's financials.

The theedgemarkets.com, quoting the Transport Ministry, reported today the Cabinet had decided yesterday to reduce the PSC.

It was reported that the lower charge is a bid to mitigate the imposition of the departure fee — which ranges from RM8 to RM150 per passenger, depending on the destination and seat class — on passengers leaving Malaysia and encourage the growth of the tourism sector.

The ministry's statement appeared to coincide with announcements on MAHB's quarterly financials and dividend today.

Earlier, MAHB said in a statement to Bursa that net profit rose to RM160.08 million in the second quarter ended June 30, 2019 from RM86.12 million a year earlier.

Cumulative first-half net profit was, however, lower at RM309.66 million versus RM530.72 million a year earlier.

In a separate statement, the group said it plans to pay an interim dividend of five sen a share.

Read also:
From Oct, PSC for international travellers at airports besides KLIA to be cut to RM50
MAHB 2Q net profit jumps 86% on higher revenue, declares 5 sen dividend