Share prices down on missing jets
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Shares in Asia Aviation (AAV), the operator of Thai AirAsia, lost more than 3 per cent today, following the tragedy on Sunday.
At noon, AAV share price lost Bt0.14 or 3.17 per cent to Bt4.28.
The Thai stock market edged up today, gaining 0.68 points or 0.04 per cent at noon to 1,511.09 points.
Shares in AirAsia lost almost eight per cent in Kuala Lumpur on Monday after one of its jets disappeared with 162 people on board. The firm slumped 12 per cent to 2.60 ringgit at the open but recovered slightly to sit at 2.71 ringgit, still down 7.82 per cent, at 0600 GMT.
The Airbus disappeared en route to Singapore from Surabaya in Indonesia's east Java after the crew requested a change of flight plan due to stormy weather. Indonesia's National Search and Rescue Agency said it is likely at the bottom of the sea.
A local broker told AFP investors were continuing to sell AirAsia shares. But selling pressure appeared to be abating as they digested the fact that the missing plane belonged to the Malaysian firm's Indonesian unit.
Shukor Yusof, founder of aviation research firm Endau Analytics, said investors and creditors would remain firmly behind AirAsia and its CEO Tony Fernandes, who transformed a floundering carrier into Asia's most successful budget airline.
"The market reaction is quite natural. I am not surprised," he said. "I think investor confidence will return quickly since the airline has a solid business model."
