MAXIS, YTLCOM, AXIATA

Maxis Bhd (MAXIS MK, Fair Value: RM6.10) has been assigned a weighting of 2.84% in the 30 stock FTSE Bursa
Malaysia KLCI index by FTSE Group, UK-based indices provider. Maxis, which begins trading today (Nov 19) will replace
Malaysian Airline System Bhd (MAS MK, Sell, TP: RM2.00) in the index series. Sector wise, the entry of Maxis into the FTSE
Bursa Malaysia KLCI index will result in the mobile telecommunications sector’s weighting to rise by 2.67% to 9.58% while
banks will see the largest fall, down 0.90% to 35.76% in the industry classification benchmark sector weightings adjustment,
FTSE Group said yesterday. (Malaysian Reserve)
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YTL Communications Sdn Bhd, a subsidiary of YTL Power International Bhd (YTLP MK, Buy, TP: RM2.50), has inked a
long-term agreement with Telekom Malaysia Bhd (TM) (T MK, Buy, TP: RM3.98) on technology collaboration to provide
the first 4G broadband services in the country. The 15-year agreement will allow YTL Communications to ride on TM’s
wholesale ethernet nationwide using the latter’s high-speed broadband (HSBB) infrastructure to provide the first of its kind 4G
ICT services. YTL Communications hopes to start the service by early next year, offering broadband connection with speed of
up to one gigabyte per second (GBps). TM is undertaking the nationwide rollout of the RM11.3bn HSBB project, of which the
government will fork out a total of RM2.4bn in a public-private sector partnership. TM will have up to 800 broadband-enabled
exchanges and 500 new telecentres once the project is competed in 2012. (Financial Daily)
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Axiata Group Bhd (AXIATA MK, Hold, TP: RM2.75) has entered into a memorandum of understanding (MoU) with
China’s Huawei Technologies Co Ltd for a strategic partnership, towards exploring cooperation opportunities and in
search of optimal and mutually beneficial solutions in areas of innovation, procurement and financing. Axiata said through the
partnership, it aimed to improve its revenue stream in the longer term via increased utilisation in terms of network traffic
simulation and faster time-to-market, while reducing costs for the group through significant savings in terms of capital and
operating expenditures. The collaboration on financing would enable it to gain a competitive advantage from having access to
facilities at lower cost, innovative financing structures and flexible financing tenure. The MoU will be valid for two years.
(Financial Daily)
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