Axiata Hold On 1st Support Line

On 16 Oct 2009 Axiata Group Bhd says PT Excelcomindo Pratama Tbk (XL) rights issue, which will raise US$300 million, is on track as scheduled and is expected to be completed in December.
Nonetheless, its steady free cashflow generation of estimated RM1.5 billion to RM1.6 billion in FY09F-FY10F should partly meet Axiata’s debt obligation and capex requirements.

Axiata share price hits high at RM3.20 have drop to now the 1st support line at RM 2.90 but this is a vary important support level due to the 2nd level will be RM2.40. If Axiata broken 1st level RM2.90 I think panic selling may happen to drop Axiata share to RM2.40. This level is AmResearch target price.

However if Axiata can hold on at RM2.90 untill next buy up of FBM KLCI at end of the year or buy vol go up with price hold on at RM2.90 will see Axiata share price may likely to bounds back to RM3.20. But in over all Axiata upside potential is limited so the best idea to invest into Axiata to maximum profit is buy into warrant, Axiata-CC and Axiata-CD.

This two warrant have drop to lowest since issued out by CIMB and OSK and the expire date is still far. I think the warrant may move up by end of the year when market getting better or windows dressing.