• MAHB’ s share prices tumbled 33 sen o r 5.1% ye sterday in huge volume. The stock prices slid 10% from monthly high of RM6.63 (23 June) to a low of RM5.97 (29 June, 8 & 18 Jul) before ending at RM6.11 yesterday following recent terrorist attack in Turkey Atartuk airport (29 Jun) and a failed military coup on 15 Jul. A whopping 8.47m shares changed hands, which is 4.3x higher than average 3-month 1.6m shares.
• HLIB institutional TP lowered to RM6.90. The slump in share prices was mainly due to knee-jerk selloff amid concern that recent unfortunate incidents in Turkey will disrupt the initial expectation of Istanbul Sabiha Gokcen Internati onal Ai rport’s (ISGA) turnaround by 2016 in anticipation of a weakening passenger traffic flows in ISGA in coming months, given the instability of the political situation as well as terrorist threats.
• The situation in Turkey is normalising but the continuing uncertainty in Turkey is a negative for MAHB’s operations in Turkey, though the exact longer term impact is still unclear. Hence, our HLIB Institutional research had downgraded MAHB to HOLD (from BUY) with lower target price of RM6.90 (from RM7.50) on lower ISGA valuation by 30%.
• Potential relief rally after bashdown in share prices? Despite the rout, MAHB’s share prices are able to find an interim support at RM5.97 (the triple bottoms), which could be a strong platform for base building activities for an eventual rebound soon. Technical rebound targets are RM6.28 (20-d SMA), RM6.48 (the downtrend line) and RM6.59 (61.8% FR).
• On the flip side, a decisive fall below the RM5.97 supports will witness further retracements towards RM5.82 (50-w SMA) and RM5.68 (29 Feb low).

Source: Hong Leong Investment Bank Research - 19 Jul 2016