KUALA LUMPUR - Shares of Malaysian Airline System Bhd (MAS) rose the most in more than a year on Wednesday following a media report that the loss-making national carrier will form a partnership with Etihad Airways as part of a rescue plan.
Shares of MAS, which counts state investor Khazanah Nasional Bhd as a major shareholder, rose as much as 18 per cent in Wednesday trade.
The counter was up 13.6 per cent at 25 sen (8 US cents) a share at 0758 GMT, outperforming a flat market.
Shares of MAS have risen almost every trading day since June 10 after Khazanah Managing Director Azman Mokhtar said the government is committed to formulating a revival plan within a year because the airline's operating cash reserves are on course to run out by then.
On Tuesday, the Sydney Morning Herald cited the CAPA Centre for Aviation as saying there was a possibility that Malaysian Airline will partner Abu Dhabi-based Etihad. "Investors are punting their money on the government saving MAS, regardless of whatever plans are installed," a broker with a Kuala Lumpur-based investment bank told Reuters.
Investors were previously worried the disappearance of Malaysia Airlines Flight 370 was putting too much additional stress on MAS' operations, the broker said.
Etihad declined to comment on the report and MAS was not immediately available to comment when contacted by Reuters.