AirAsia shares fall 3 percent on concerns about Indonesia capital rules
KUALA LUMPUR (Reuters) - Shares of AirAsia dropped as much as 3 percent in early trade on Thursday, its second day of decline, on investor worries that its Jakarta-based affiliate may be shut down if it does not meet a government-set deadline to raise funds.
Indonesia's transport ministry said PT Indonesia AirAsia was one of 13 carriers that must repair stretched balance sheets by July 31. AirAsia shares fell as much as 15 percent to a five-year low on Wednesday.
Indonesia AirAsia said in a statement there is no risk to the unit's operating licence and that its level of equity has never been an issue.
On Thursday, the stock was 2.3 percent lower at 1.27 ringgit at 0105GMT while the benchmark index <.KLSE> was 0.3 percent lower.
(Reporting By Al-Zaquan Amer Hamzah; Editing by Miral Fahmy)
