Axiata Group Bhd, a Malaysian mobile phone operator, hit a 19-month high after AmResearch Sdn Bhd increased its fair value to reflect ?tremendous? profit margin expansion at its Indonesian unit in the first quarter.

The stock climbed 3.7 per cent to RM3.93 at 9:54 am local time in Kuala Lumpur trading. It ended the morning session 3.4 per cent higher at RM3.92 on course for its steepest gain since March 1.

RHB Research Institute Sdn. said in a note today that there may be a ?potential upside? to its earnings forecast for Axiata after the company?s Indonesian unit reported first-quarter profit that exceeded the broker?s estimates.

AmResearch, in a report today, increased its fair value for Axiata to RM5.05 from RM5.

PT XL Axiata yesterday posted first-quarter net income of 598.4 billion rupiah compared with a restated loss of 217.2 a year earlier. -- Bloomberg