Quick take: AirAsia falls 10%, most active on Bursa

BDO Governance Advisory Sdn Bhd clearing Tan Sri Tony Fernandes and Datuk Kamarudin Meranun of any wrongdoings.

KUALA LUMPUR: Shares of AirAsia Group Bhd fell in active trade Monday morning with over 23 million shares exchanging hands, making it the most actively traded counter on Bursa Malaysia.

The low-cost carrier's share price fell 10.29%, or seven sen to 61 sen. AirAsia X was unchanged at five sen with 3.3 million shares traded.

AirAsia gave up most of Friday's gains as the fallout from the Covid-19 continued to plague the global economy and airlines. The various governments' move to shut down their borders and airlines decision to scale down their flights continued to weigh on their shares.

Last Friday, the FBM KLCI surged over 80 points while positive news from BDO Governance Advisory Sdn Bhd clearing Tan Sri Tony Fernandes and Datuk Kamarudin Meranun of any wrongdoings helped shore up AirAsia share price.

AirAsia reinstated Fernandes and Kamarudin as CEO and executive chairman respectively, following the release of the findings by BDO Governance Advisory Sdn Bhd into bribery allegations levelled against AirAsia and AirAsia X Bhd.

BDO had presented its independent internal inquiry findings to the non-executive independent board committee on March 19.

The findings state that AirAsia had complied with its procurement process and that the group’s aircraft acquisition was justifiable and done at favourable prices.

BDO also found that AirAsia X’s sponsorship of the sports team was approved in compliance with its procedures.

“The sponsorship of the sports team by Airbus was disclosed to and supported by the Board at the relevant time. The sponsorship showed demonstrable benefits to the AirAsia Group and was not linked to any purchase decisions by the company, ” it said.

It was also found that both Fernandes and Kamarudin had properly disclosed their interests to AirAsia’s board and abstained from discussions and/or decisions relating to said sponsorships.

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