Nomura said Indosat was among its key picks from Southeast Asia's telecoms sector for September, citing Indonesia's No. 2 mobile phone provider's 3G spectrum announcement, with Malaysia's Axiata Group Bhd also among its preferences due to recent strong results.
"Indosat should benefit from its recent announcement about it being able to use 900 Mhz for 3G services, where it has relatively more spectrum than peers. Axiata's strong recent results should bode well, we think - upside risks to fiscal year 2012 guidance," Nomura said in its Asia telecoms report.
Shares in Indonesia-listed Indosat and Malaysia-listed Axiata have outperformed local indexes since July, with Indosat up 27.2 percent versus a 3.3 percent gain of the broader Jakarta's Composite Index.
Axiata shares gained 10.8 percent during the period against a 1.1 percent rise of the broader Malaysian main index.
At 0515 GMT, Indosat shares were unchanged at 5,500 rupiah, while Jakarta's Composite Index was up 0.36 percent. Axiata shares fell 2.6 percent to 6.06 ringgit compared with Malaysia's main index, which was down 1.5 percent.
(Reporting by Viparat Jantraprap in Bangkok; firstname.lastname@example.org)