Khazanah’s announcements capers MAS share price

Malaysia Airlines (MAS) share appears the most actively traded on Bursa Malaysia yesterday after its largest shareholder; Khazanah Nasional Bhd announced that it would submit a restoration plan of the national airline in a year.

MAS’s share price rose one sen or 5.56 percent yesterday to close at 19 cents at 5pm.

In the first six months of this year, MAS shares fell 12 cents, or 38.7 percent due to some problems they faced as well as the tragedy of the loss of MH370 aircraft on March 8. The lowest was 15.5 cents per share which was recorded on 19 May.

Aviation sector’s analyst, MIDF Research, Chua Boon Kian, said the 12-month period specified by the is too long as the airline is running out of time to address the difficulties encountered.

"I think the decision should be made within the next six months. Khazanah must immediately make the best decision for MAS because based on its current position, the company only has cash flow for 18 months to survive.

"Airlines cannot continue to incur losses," he said when contacted yesterday.

About the best option to restore the MAS, Kian Boon said, everything is still too vague, but in his view Khazanah should sell its shares in MAS and make it an independent company.

He said the government is also expected to no longer take any decision to inject new funds into the MAS.

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