Kenaga Research maintains 'overweight' call on telecommunications sector

Kenaga Research maintains 'overweight' call on telecommunications sector
Business & Markets 2013
Written by Bernama
Wednesday, 03 July 2013 14:25

KUALA LUMPUR (July 3): Kenanga Research is maintaining its "overweight" call on the telecommunications sector, based on the first quarter 2013 results of the players within it.

In a note today, the research house said the telecommunication players' results came in mostly within expectations and was on track to meet their respective full-year earnings guidance.

"Despite the lacklustre year-to-date share price performance of these players, the sector’s defensive nature and reasonable dividend yield, will still be able to provide investors with the much-needed shelter during the current uncertain period.

"We believe that the 4G roadmap will get clearer in the second half of this year, given that both Maxis and Celcom are rapidly expanding their service coverage, while Digi is planning to unveil its plan within the next few weeks," Kenanga Research said.

The research firm picked Digi as its top pick in the sector due to the company's stronger and more stable network, following the completion of its network modernisation plan by end of the third quarter this year.