Morgan Stanley: Telecom stocks to rise in 3-6 months
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17:33 18-OCT-2000
Mark Shuper, the vice president of team leader of Asia Pacific Telecommunications, Morgan Stanley said that telecom stocks will continue to swing at the lower end in the near term.
As 2.5G development matures, a rebound will occur.
This is expected to take place in three to six months' time.
It suggested "buy" for China Unicom (0762-HK, NYSE: CHU) and maintained the rating of Asia Satellite Tecom (1135-HK, OTC BB: AISLF) and China Mobile (0941-HK, NYSE: CHL) at "outperform".
It said that the rating of China Unicom is higher than China Mobile because the former has performed better since it listed.
In addition, it is optimistic on China Unicom's prospect for continuous growth over three to four years.
It also believed that there would be a 20-35 pct upward movement for the company after telecom counters recover.
Mr Shuper said that the bidding price of 3G licence in Hong Kong would not be as high as in Britain.
Bidders are not likely to bid at a high price because the government has set a condition that winners open up part of the network to other operators.
Sunil Gupta, the Principal, Regional Team Leader of Internet & Media in Morgan Stanley, said that Internet companies are still in the process of rationalisation and they remain as attractive investments.
He believes that the rationalisation period would not last too long.
Besides, he said that only four to five would be left in the various fields of the local Internet industry in the long term.
For the rest of the region, he is confident the Internet counters will do well in China, Korea and Taiwan.
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