In today’s briefing:
- XL Axiata (EXCL IJ) – Converging on Homes and Offices
- Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
XL Axiata (EXCL IJ) – Converging on Homes and Offices
- XL Axiata (EXCL IJ) continues to see strong growth in data revenues and traffic with data -pricing improving in 4Q2021 and consumers taking more.
- The company continues to stress its aim to be the number one convergent operator and the successful completion of the Link Net (LINK IJ) acquisition accelerates this move.
- XL Axiata continues to raise data prices and will start to see synergies from Link Net from 3Q2022, including potential cost and revenue benefits. Valuations are attractive.
Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers
US equity markets were closed due to President’s Day holidays. The US 10Y Treasury yield dropped 6bp to 1.93%. Risk-off Russia-Ukraine sentiment however continues to weigh on markets with the European markets closing lower – DAX, CAC and FTSE were down 2.1%, 2% and 0.4% each. Brazil’s Bovespa closed 1% lower. In the Middle East, UAE’s ADX was down 1.2% while Saudi TASI closed 0.8% higher. Asian markets have opened lower again today with Shanghai, HSI, STI and Nikkei down 1.2%, 3%, 0.8% and 2.2% respectively. US IG CDS spreads were 0.9bp wider and HY CDS spreads were 4bp wider. EU Main CDS spreads were 2.4bp wider and Crossover CDS spreads were 6.7bp wider. Asia ex-Japan CDS spreads were 0.7bp wider.
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