AirAsia in focus after special dividend, IHH lifts KLCI

KUALA LUMPUR: AirAsia Group’s shares took to the skies early Friday as investors piled into the low-cost carrier following its special dividend of 40 sen a share.

Lifting the 30-stock FBM KLCI were IHH, Nestle and Petronas-linked stocks.

At 9.16am, the KLCI was up 4.32 points or 0.25% to 1,700.66. Turnover was 236.90 million shares valued at RM160.15mil. There were 132 gainers, 189 losers and 169 counters unchanged.

Share markets ticked slightly lower in early Asian trade as investors await a closely watched meeting between the Chinese and U.S. presidents in Argentina this weekend for signs of a trade war détente, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1%. In Japan, the Nikkei was up 0.2%.

AirAsia rose 14 sen to RM3.12 with 10.93 million shares done. However, CIMB Equities Research downgraded it from Hold to reduce with a lower target price of RM2.12 based on sector average CY20F P/E of 10 times and adding special dividend per share (DPS) of 70 sen.

Petronas Gas rose 30 sen to RM19.10, Petronas Dagangan added 12 sen to RM26.24.

IHH Healthcare advanced 18 sen to RM5.68 – nearing the RM6 price tag which Khazanah Nasional was selling its 16% stake to Mitsui & Co.

Nestle rose 30 sen to RM147.30, Focus Lumber 14 sen to RM1.66, Petron 12 sen to RM7.15 and Litrak 11 sen to RM4.05.

My EG gained two sen to RM1.07 with 20.7 million shares done.

Padini was  the top loser, down 43 sen to RM5.09, F&N lost 34 sen to RM33.06, KL Kepong 32 sen to RM24.42 while QL Resources lost 19 sen to RM7.03.

KPS lost 10 sen to RM1.23 and Tenaga eight sen lower at RM14.16.