Competition to weigh on local telco earnings

Cost pressures: A file photo of a technician examining a control panel for a communications tower. Price competition is expected to be a big factor for local telcos. — Bernama

PETALING JAYA: The Malaysian telco sector may have recovered from the July lows, but the key risks ahead for the sector and stocks include intensifying competition, weaker-than expected earnings and regulatory setbacks.

Clarity on the access cost impact will be a key share price re-rating catalyst for the sector in RHB Research’s view.