Slower passenger traffic growth expectation; MAHB shares slide
Published on: Tuesday, April 15, 2014
Kuala Lumpur: Shares of Malaysia Airports Holdings Bhd (MAHB) shares declined marginally Monday on expectations of slower passenger traffic growth.At 11.44am, MAHB shares slipped two sen to RM7.99 with 138,700 changing hands.Hong Leong Investment Bank Research (HLIB Research) said MAHB reported a slower traffic growth of 12.6 per cent in March as compared to 17.46 per cent in February and 25.8 per cent in January.
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"Hence, We expect lower growth in April before potentially rebounding the following month, as can been seen in past incidents," it said in a research note Monday.The research house said the commencement of klia2 on May 2 and the higher-than-expected passenger traffic growth at Istanbul-Sabiha Gocken Airport (ISGA) could also help boost the airport operator's passenger traffic growth.It said ISGA, whereby MAHB increased its stake to 60 per cent from 20 per cent previously, reported passenger growth of 40 per cent year-on-year in the first quarter of this year, outpacing the research house's assumption of 28 per cent."This is due to the fast expansion of Pegasus Air and Turkish Airlines," it said.
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