Azanis Shahila AmanKUALA LUMPUR: Shares of AirAsia Group Bhd continue sliding after the airline’s co-founders relinquished their executive roles for two months following a bribery scandal involving its only aircraft supplier, Airbus SE. AirAsia extended its losses by 10.16 per cent or 13 sen lower to close at RM1.15 yesterday from Monday’s close of RM1.28. Analysts, meanwhile, downgraded AirAsia Group and AirAsia X shares following the allegations coupled with negative impact on coronavirus outbreak on travelling and tourism. MIDF Amanah Investment Bank Bhd said the allegations could be an overall sentiment dampener to AirAsia group especially in an operating environment that was already facing headwinds. The firm downgraded AirAsia Group to “neutral” from “buy” and adjusted its target share price to RM1.20 from RM1.86, although it did not make changes to earnings estimates.

Source: New Strait Times February 05, 2020 04:07 UTC