KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Retain neutral with target price (TP) of RM2.50 AirAsia announced that the Board of Directors of AirAsia has considered and approved the subscription of up to IDR3,042bn (c.RM1.0bn) of perpetual capital securities to be issued by its 49%-associate in Indonesia AirAsia (IAA). The subscription would be done via conversion of existing amount due by IAA to the Group. This is the second equity injection in IAA to address the issue of the negative equity balance. We has adjusted the conversion of the debt by reducing the amount due and increased its investment in IAA. Our earnings estimate are however unchanged. We maintain our Neutral call and PE-based target price on AirAsia of RM2.50 , based on enlarged share capital that includes the proposed share placement to Tune Live Sdn Bhd which is expected to complete by 1QFY17. To recap. Airlines operators in Indonesia were expected to maintain a positive equity position, as the new regulation was establishe...