AirAsia Looks to Unload Non Flying Baggage

AirAsia Bhd shares was in active trade yesterday rising 5.03% in a day to RM3.34. This is their biggest daily percentage rise since May.

What's fuelling this?

Its founder Tan Sri Tony Fernandes revealed that group plans to sell more stakes in non-flying businesses to fund special dividends to shareholders.

He also said that Airasia is close to selling some or all of its aircraft leasing arm and its remaining 25% stake in a travel booking JV with Expedia Inc.

The airline will also consider the sale of stakes in its food, engineering and duty-free businesses in the future, although Tony told newswire Reuters that no talks on those have begun.

5:40 - Asian shares are climbing back to pre-financial crisis high. The tech sector rise has been the most notable market shift since 2007 and taking centre stage. Tech has surpassed finance as the largest component of the MSCI Asia Pacific Index for the first time since the internet bubble burst in 2000. At the local front, British American Tobacco shares were down yesterday, while Press Metal Aluminium Holdings Bhd hit a record high, ahead of potential changes in the component stocks of the FBM KLCI index.

8:18 - Iskandar Waterfront City Bhd (IWCity) and Iskandar Waterfront Holdings Sdn Bhd (IWH) have mutually agreed to terminate the proposed merger. Instead, Tan Sri Lim Kang Hoo now wants to consolidate IWC and Ekovest Bhd. Ekovest received a proposal from Lim for it to buy the remaining 62% stake in IWC from minority shareholders. The offer price of RM1.50 per share or for new Ekovest shares was 7.14% premium to IWC’s last traded price of RM1.40 before it requested for trading suspension.