KUALA LUMPUR (Sept 19): Telekom Malaysia's current share price weakness following the fixed-line operator's announcement of plans to move aggressively into the highly competitive mobile-phone network sector could be overdone, says Kenanga Research. 

Any loss of cost savings could be exaggerated as Telekom's existing mobile business has been operational since January last year, the broker adds.

Kenanga expects Telekom won't incur significant start-up costs as it has scale in operations. Kenanga maintains its outperform rating on Telekom with an unchanged target price of RM3.95.