KUALA LUMPUR (Nov 30): Shares of Malaysia Airports Holdings Bhd (MAHB) slipped in early trade on Wednesday as investors were concerned about the escalating costs for the new klia2 terminal.
At 9.59am, MAHB was down nine sen to RM6. There were 131,000 shares done.
However, the FBM KLCI charged ahead 10.86 points to 1,455.68 on buying of index-linked stocks. Turnover was 241.57 million shares valued at RM171.22 million. There were 230 gainers, 132 losers and 206 stocks unchanged.
MAHB forecast the CONSTRUCTION [] cost of KLIA2 to escalate to between RM3.6 billion and RM3.9 billion mainly due to upgrades of specifications of the airport. The initial budget was RM2.5 billion.
Hwang DBS Vickers Research had downgraded its target price for MAHB to RM6.70 as it factors in the higher investments for klia2.
“We believe that MAHB’s cash levels will be stretched following the hike in costs for the new klia2 and factor in a cash call. We also cut MAHB’s dividend payout policy to 40% in view of the need to preserve cash levels,” it said.
At 9.59am, MAHB was down nine sen to RM6. There were 131,000 shares done.
However, the FBM KLCI charged ahead 10.86 points to 1,455.68 on buying of index-linked stocks. Turnover was 241.57 million shares valued at RM171.22 million. There were 230 gainers, 132 losers and 206 stocks unchanged.
MAHB forecast the CONSTRUCTION [] cost of KLIA2 to escalate to between RM3.6 billion and RM3.9 billion mainly due to upgrades of specifications of the airport. The initial budget was RM2.5 billion.
Hwang DBS Vickers Research had downgraded its target price for MAHB to RM6.70 as it factors in the higher investments for klia2.
“We believe that MAHB’s cash levels will be stretched following the hike in costs for the new klia2 and factor in a cash call. We also cut MAHB’s dividend payout policy to 40% in view of the need to preserve cash levels,” it said.
