Maxis gains 2.16% in tandem with FBM KLCI

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KUALA LUMPUR (April 13): Maxis Bhd rose as much as 13 sen or 2.16% this morning to RM6.15 in tandem with the positive performance of the FBM KLCI.

However, the telecommunication company pared gains to trade at RM6.11, up nine sen or 1.5%, as at 11am.

The counter saw 8.4 million shares changing hands.

Alliance Investment Bank remisier Raymond Foo said Maxis' performance in the morning trade was lifted by the positive mood at Bursa Malaysia.

The FBM KLCI rose 5.2 points to 1,720.2 points as at 11.10am.

However, he opined that in the short term, Maxis' share price will continue to be pressured as its profit margin could be affected by customers' migration to other telecommunication companies.

"The impact of the migration will only be seen in the next one or two quarters; if Maxis' earnings is not improving, it will be pressured," Foo told theedgemarkets.com.

He did not rule out the possibility of a technical rebound following the sell down in early April; however, he maintained that Maxis will continue to face pressure in light of stiff competition among telcos to grab a bigger slice of the market share.

The counter lost market capitalisation of RM3 billion since its RM6.42 closing price on April 4 until yesterday's closing price of RM6.02.

On April 8, Maxis chief executive Morten Lundal had apologised for the telco's "tailored plans", which had angered some of its customers, in a livestream video.

The group also offered automatic updates for Maxis One customers: customers with 1GB data quota will now move to 5GB, and customers with 3GB will now get 8GB.