AirAsia hits record low

AIRASIA Bhd's share price slumped to a record low yesterday as investors cut their holdings on concern the budget airline's earnings will be hurt by rising crude oil prices.

Filings to the stock exchange yesterday showed that institutional shareholder T. Rowe Price Associates Inc, which has steadily been reducing its holdings in AirAsia of late, sold 3.7 million shares on June 16 in the open market.

This leaves it holding some 142.8 million shares, or a six per cent stake, in AirAsia.

The stock, which has been on a steady downtrend since April, fell by 4.5 sen or 5.2 per cent to 82 sen yesterday, its lowest close since getting listed in November 2004.

Some 12.1 million shares changed hands, making it the day's second most actively traded counter.

"Investors are basically afraid its earnings will be eroded as oil prices continue to rise," a dealer remarked.

Oil prices hit a record near US$140 (RM456) a barrel last week and have doubled from a year ago.

Thirteen of at least 19 analysts that track AirAsia have a bearish recommendation on the stock.