'Buy' calls on Axiata, Telekom Malaysia

OSK Research Sdn Bhd has maintained a "buy" call on Axiata Group Bhd with a target price of RM5.60.

In a research statement today, OSK said in the face of global economic
uncertainties, the Axiata management has undertaken good strategic
initiatives to keep operating cost lean.

"Axiata is also
promoting sharing of infrastructure on the back of accelerating data
usage, and it remains as an inexpensive regional mobile exposure," it
said.

OSK said a major re-rating catalyst would come from a higher dividend payout.

Meanwhile, the research firm has rated Telekom Malaysia Bhd (TM) a "buy" with target price of RM5.15.

It said TM's core earnings were expected to pick up in financial year
2012 as Unifi's footprint expanded to 1.3 million premises.

"We
also gather from TM that Unifi's base rose above 200,000 at end-November
2011, beating the management's own expectations and our estimate," it
said.

OSK said TM would also benefit from the ramp-up in
wholesale contribution following the inking of High-Speed Broadband
wholesale agreements with Maxis and P1 this year.

It said the stock remained one of its top picks for exposure to the telecommunications sector.

"Its foreign shareholding level rose 19 per cent at end-October, a
level last seen in 2008, reflecting renewed optimism on the stock," it
said. -- Bernama