Hot Stock Profit-taking snaps AirAsia’s winning streak

by **Cals** Wed 21 Oct 2015, 04:11

Hot Stock

[size=28]Profit-taking snaps AirAsia’s winning streak

By Kamarul Anwar / theedgemarkets.com | October 20, 2015 : 2:03 PM MYT3
KUALA LUMPUR (Oct 20): AirAsia Bhd ([You must be registered and logged in to see this image.] Valuation: 1.20, Fundamental: 0.20), the most-active stock on Bursa Malaysia, ceded five sen or 3% to RM1.52, the stock's lowest so far today.

At 12.30pm, AirAsia saw some 50 million shares changed hands. The stock traded earlier at a high of RM1.61.

AirAsia's week-long streak of higher closes seems on to be the verge of being broken today as remisiers see profit-taking happening in the budget airline's counter.

SJ Securities Sdn Bhd senior remisier Goh Kay Chong told theedgemarkets.com that AirAsia was having a "normal" correction today, given how high the stock had soared over the past two months.

"Remember that AirAsia has actually been on a rebound from a low of 76.5 sen. There were cases of profit-taking activities since, before the higher closes last week.

"So, today is just a normal correction done on the counter," Goh said over telephone.

AirAsia has been closely watched amid privatisation rumours. Market talk on AirAsia as a privatisation target amid cheap valuations supported the stock's ascendancy in recent days.

AirAsia's current share prices compare with the company's latest reported net assets per share at RM1.71. At RM1.52, the market value of AirAsia is at 89% of its net assets.

Over the last one year, AirAsia had traded at an intraday high of RM2.90 on December 26, 2014 before descending to a low of 76.5 sen on August 26, 2015.

(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.)

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