Hot Stock Malaysia Airports up 3.9% on staggered aviation fee hike

by **Cals** Fri 15 Apr 2016, 00:50

Hot Stock

[size=28]Malaysia Airports up 3.9% on staggered aviation fee hike

By Yimie Yong / theedgemarkets.com | April 14, 2016 : 4:39 PM MYT

KUALA LUMPUR (April 14): Malaysia Airports Holdings Bhd rose as much as 25 sen or 3.9% to RM6.65, after the Government indicated that Malaysian aviation fees would be increased on a staggered basis.

News reports quoted Transport Minister Datuk Seri Liow Tiong Lai as saying yesterday that the Department of Civil Aviation would raise airline charges on a staggered basis, following complaints from airlines.

Liow said airline companies had requested for a staggered increase, which would give them time to plan their budgets and prevent abrupt changes to airfares.

Today, Malaysia Airports shares pared gains. At 3:51pm, the counter was traded at RM6.55 for a market capitalisation of RM10.85 billion.

Malaysia Airports, the fourth-largest gainer on Bursa Malaysia, saw 747,100 shares changing hands.

At current prices, Malaysia Airports' share price has exceeded analysts' target price (TP) for the stock.

MIDF Amanah Investment Bank Bhd said in a note yesterday that it maintained its “neutral” call on Malaysia Airports shares, with unchanged TP at RM6.35.

Today, a dealer told theedgemarkets.com that trading volume for Malaysia Airports shares was not very substantial, despite the stock's gains.

He said certain investors might be buying the stock in anticipation of Malaysia Airports' first quarter results announcement next month.

“Perhaps some buy ahead of its results next month or before MAHB (Malaysia Airports) proposes dividends,” he said.
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