Highlights / Stock Picks of the Day Axiata Group ("Axiata") – Not Rated

Heavyweight telco stocks bore the brunt of this morning’s panic selling, with AXIATA and DIGI losing a hefty 43 sen (at RM6.21) and 21 sen (at RM4.93) respectively. Losses on TM were less painful, though it erased an earlier gain to end the mid-day session down 7 sen at RM5.53. From a technical perspective, AXIATA broke below the trend line at RM6.60, and the confluence of 50- and 100-day SMAs further down at RM6.35/40 offered little support to the battered stock. We reckon that if AXIATA does not manage a comeback above the aforementioned RM6.40 level in the second half of the day, the technical picture would then trigger a further sell signal on AXIATA. As it stands, the next support levels to keep an eye are located at RM6.09, RM5.91 as well as the crucial RM5.61 (November low).

Source: Kenanga