Disappointing 1h18 results drags Axiata lower on Bursa
Published on: Tuesday, August 28, 2018
Kuala Lumpur: Axiata Group Bhd's shares on Bursa Malaysia were lower in early trade on Monday, dampened by the disappointing first half results ended June 30, 2018 (1H18).The stock fell 13 sen to RM4.59 as at 9.52 am with 244,700 shares changing hands.The telecommunications conglomerate on Friday, reported a 1H18 net loss of RM3.5 billion, mainly due to a one-off provision of loss on its investment in India amounting to RM3.4 billion.
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This followed the completion of Idea Cellular's (Idea) merger with Vodafone India, which resulted in Axiata's stake in the former falling to below 10 per cent.During the period, revenue weakened by 2.7 per cent to RM11.6b.In a note, Public Investment Bank Bhd said its target price set for Axiata remained unchanged at RM5.00, whilst maintaining its "neutral" rating on the Group.Kenanga Research has downgraded Axiata to "market perform" against "outperform" previously with a lower target price of RM4.80 from RM4.95 previously.
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