Movement Restriction Order negative for aviation sector, says RHB Research

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KUALA LUMPUR (March 18): The aviation sector — Malaysia Airports Holdings Bhd (MAHB) and AirAsia X Bhd (AAX) in particular — will be negatively affected by Malaysia's Movement Restriction Order, says RHB Research.

In a note today, RHB Research said passenger volume should drop significantly from March 18-31.

“While international travel service is still there to assist Malaysian[s] to travel back, the volume is likely to be minimal.

“Flights within Malaysia will also be severely affected due to Covid-19 fear,” it said.

At 11.04am, MAHB fell 4.42% or 23 sen to RM4.97, while AAX rose 10% or 0.5 sen 5.5 sen.

Meanwhile, AirAsia Group Bhd gained 1.6% or 1 sen to 63.5 sen.