Sector Update � Telco (NEUTRAL, maintain)

Top Calls

Sector Update � Telco (NEUTRAL, maintain) - A benign signal We are neutral on the spectrum fees imposed by the Government. While reasonable by regional comparison, the fees are an additional burden to the cellcos which are facing a tougher operating environment due to price competition. We believe dividends should remain intact for the sector, except for Axiata which is highly geared.

Other Calls

Sector Update � Banking (OVERWEIGHT, maintain)

Results Note � TM (HOLD, maintain) - Short-term pain for mobile ambitions

Results Note � Karex (HOLD, maintain) - Strap on for bumpy ride

Morning News & Market Summary

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