Hot Stock AirAsia up 8% after co assures investors on fundamentals, transparency

by **Cals** Thu 18 Jun 2015, 20:12

Hot Stock
AirAsia up 8% after co assures investors on fundamentals, transparency

KUALA LUMPUR (June 18): AirAsia Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) rose as much as 8% after the company issued a detailed business update to assure investors on the budget airline's strong fundamentals and transparency.
AirAsia (fundamental: 0.2; valuation: 1.4) rose as much 12 sen to RM1.65 before paring gains.
At 11.27am, the most actively-traded stock across the exchange was transacted at RM1.64 with some 56 million shares done.
The rise came after AirAsia provided a detailed explanation on its cash flow and debt, which were questioned by Hong Kong-based GMT Research.
GMT has questioned AirAsia's accounting, profit generation, cash flow, leverage and group structure.
In Malaysia, analysts, however, remained optimistic on AirAsia's outlook. In a note to clients today, Hong Leong Investment Bank Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) analyst Daniel Wong said the research firm remained positive on AirAsia as it believed the airline's fundamentals were still intact.
Wong believes the sell down in AirAsia shares was overdone. AirAsia shares had closed lower for the past seven consecutive days.
Yesterday (June 16), the stock fell 11 sen or 7% to close at RM1.53 with some 170 million shares done. On June 9, the stock ended lower at RM2.10.
(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.)