Shares in Malaysian budget airline AirAsia Bhd extended a week of declines, dropping as much as 9.8 percent, as a message from Chief Executive Tony Fernandes that the firm has no need to recapitalize failed to soothe investor nerves jangled by a June 10 research report that questioned AirAsia accounting.
At 0226 GMT, the stock was trading at 1.48 ringgit, close to the multi-year lows it has hit since little-known Hong-Kong based firm GMT Research issued its report.
Wednesday’s shares slide came after Fernandes, attending the Paris air show, said the company did not have any need to recapitalise and had ample room to raise cash. On Monday, Fernandes wrote to investors saying the company will raise funds at loss-making associates in Indonesia and the Philippines and cut debt.