Southeast Asia’s Telecom Sector Rally Could End Soon, DBS Says
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The rally in Southeast Asian telecommunications shares this year is unsustainable, given the weaker pace of data revenue growth, according to DBS Bank.
The sector’s recent outperformance versus country indexes has been mostly driven by high dividend yields as well as merger and acquisition activity, especially for names like Malaysia’s Axiata Group Bhd. and DiGi.Com Bhd., analysts Sachin Mittal and Woo Kim Toh wrote in a note.