Bursa Community
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Bursa Community

Bursa Malaysia Stock Forum - Enriching You!


Maybank IB Research downgrades Aviation sector to Neutral

Bursa Community :: Community News

Go down

Maybank IB Research downgrades Aviation sector to Neutral Empty Maybank IB Research downgrades Aviation sector to Neutral

Post by Cals Fri 07 Mar 2014, 12:05

Maybank IB Research downgrades Aviation sector to Neutral
Business & Markets 2014
Written by theedgemalaysia.com   
Friday, 07 March 2014 11:13

KUALA LUMPUR (March 7): Maybank IB Research has downgraded the Aviation sector to Neutral (from Overweight) and said that 4Q13 results were a big disappointment, with the worse yield and profit decline since the global financial crisis (GFC) of 2008-09.
In a note Friday, Maybank IB analyst Mohshin Aziz said overcapacity was the root of the underperformance, forcing the industry to dump fares in favour of loads.
“We have warned about an industry overcapacity and fare war since early 2013, and by 2Q13 our forewarnings have turned out to be correct.
The fare war intensified in 3Q13, and we thought it had reached the bottom. However, we were wrong as 4Q13 turned out to be even worse as airlines continued to dump fares. 4Q has been seasonally the strongest quarter and it is against conventional wisdom to confer discounts during this period, so we thought.
Mohshin said airline CEOs were looking at 2014 with caution, and had trimmed their fleet growth plans. ‘
“The industry will now deploy eight aircraft, down from 10 earlier. This shows the industry has sobered up and is conferring more respect to the fundamental supply-demand dynamics. 4Q13 should bethe bottom of the cycle and we expect things to get better,” he said.
“Cut to Neutral (from Overweight), AirAsia and AirAsia X are our Buy list, Neutral on MAS, Sell on MAHB,” said Mohshin.
Cals
Cals
Administrator
Administrator

Posts : 25277 Credits : 57721 Reputation : 1766
Male Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it I’️d have been right perhaps as often as seven out of ten times.”
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis

Back to top Go down

Back to top

- Similar topics

Bursa Community :: Community News

 
Permissions in this forum:
You cannot reply to topics in this forum