Bursa Malaysia said in a filing today the proprietary day trading (PDT) and intraday short selling (IDSS) of AAX’s shares was halted after its last done price fell by more than 15 sen or 15% of the reference price.

It added the short selling under the PDT and IDSS would only be activated tomorrow at 8.30am.

Under Bursa Malaysia’s rules, traders can short sell a stock that he or she did not own and buy back the stock later the same day before market close.

Having hit a low of RM2.05 in the morning trading session, the counter pared its losses and was down 10.48% or 26 sen at RM2.22 at 2.40pm.

The mid-range carrier posted yesterday its fourth consecutive quarterly net profit for its second quarter ended June 30 (Q2 FY2023) amounting to RM5.54 million compared to a net loss of RM652.52 million in the same period last year, as quarterly revenue soared 379% on the back of a surge in international travel as borders reopened.

However, investors were likely spooked that AAX’s net profit dropped 98.31% from RM328 million in Q1 FY2023 due to higher cost maintenance and overhaul as well as aircraft lease, while revenue slipped 6.55% from RM548.84 million due to a low-sales season in Q2.

As of 30 June 2023, the group had 11 aircraft activated, compared to five a year ago. As a result, seat capacity grew by over 26 times year-on-year to 818,422 seats flown.

On its Practice Note 17 (PN17) status, CEO Benyamin Ismail said yesterday AAX had submitted a waiver application to Bursa Securities in July and that material announcements will be made in accordance with due process.