A safety incident involving a Malaysia Airlines plane on Monday while not uncommon, may well highlight investor sensitivity towards airplane incidents following last month's mysterious disappearance of Flight MH370, analysts say.
Malaysia Airlines (MAS) shares jumped over two percent after one of the carrier's planes carrying 166 people turned back and landed safely in Kuala Lumpur early on Monday. The company said that one of the tires on the main landing gear of the aircraft burst during takeoff.
Shares in the beleaguered Malaysian airline remain down 12 percent from where they traded before Flight MH370 disappeared on March 8 shortly after takeoff from Kuala Lumpur to Beijing. The search for the plane, which is suspected to have gone down in the southern Indian Ocean, continues.
"An incident such as today's one does happen – it happened to Singapore Airlines at the weekend too, so generally diversions happen and are necessary for safety reasons," said Paul Yong, vice president, equity research, at Singapore's DBS Bank.
"But when you have a significant and in this case an unprecedented incident in the case of MH370 then there can be more of an impact," he added.