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MAS shares at one-month high
Publication Date : 18-06-2014
Malaysian Airlines (MAS) saw its share price climb towards a one-month high yesterday on mild bargain hunting and investor expectation of a revamp to turn around the loss-making carrier.
At the close of yesterday’s trading, the counter was up one sen to 22 sen on a turnover of 167.3 million shares done.
A technical chartist expects MAS’ share price to see strong resistance at 23.5 sen, which is its 100-day simple moving average (SMA).
“Strong resistance is at the 200-day SMA of 28 sen, at which a decisive penetration will see it moving upwards,” he said.
Analysts have noted that the national carrier faced reality by raising its air fares in the mid to long-haul route, and realigning its airfares to those of full service offerings.
On the airline sector, analysts noted another disappointing quarter despite positive growth of 18 per cent year-on-year in total number of passengers handled by Malaysia Airports Holdings Bhd.
MAS was among the airlines that financial results did not meet consensus expectations.
RHB Research said MAS should consider a restructuring to improve yields and productivity while trimming its heavy workforce.