AirAsia Group Bhd rose as much as 4.5 sen or 5.49% to a five-month high of 86.5 sen in early morning trade today after the group said it expects travel to return to pre-Covid levels in the next six to 12 months.
At 10.09am, the counter had pared some gains at 85 sen, still up three sen or 3.66%.
The counter, among the most actively traded stocks this morning, saw 24.33 million shares traded.
The stock has rebounded 63.46% from its recent trough of 52 sen on Nov 3.
At 85 sen, the company was valued at RM2.82 billion.
In an interview yesterday, group chief executive officer (CEO) Tan Sri Tony Fernandes said he is “quietly” optimistic about 2021 with a focus on expanding the group’s base in Southeast Asia.
He added that the group is in discussions about starting three new airlines in the region, and its plan to raise up to RM2.5 billion is on schedule.
Meanwhile, Rakuten Trade head of research Kenny Yee said yesterday a successful development of Covid-19 vaccines would lift cross-border travel restrictions and worldwide travel bans, benefiting AirAsia.
“AirAsia’s share price is in consolidation mode now following the previous run; we expect buying momentum to resume as it is one of the potential recovery plays,” he said.
MIDF Research also in its report last Thursday upgraded the aviation sector to “neutral” from “negative”.
“We foresee that air travel demand will recover meaningfully, but only at a portion of pre-pandemic levels in FY21 (the financial year ending Dec 31, 2021). With vaccine introduction and subsequent administration on the horizon, we believe that there is light at the end of the tunnel for aviation players,” it said.