Friday, May 21, 2010

SingTel

SingTel has cracked its 12-month $2.90 support level and this is expected to take STI down along with it. We believe SingTel is hit by growing concerns over its overseas associates. With data usage becoming a key revenue driver for Indonesia’s telco operators, the worry is that Telkomsel, its 35% owned Indon associate will be the loser in the data war as other competitors like Indosat roll out their capex plans ahead of Telkomsel.

Meantime, Bhart, its Indian unit is facing difficulties in competition, 3G license fees and regulatory challenges on top of trying to integrate is newly acquiring African assets. With the AUD fast losing ground to S$1.14, it is also likely to see forex translation losses on the revenue and earnings from its Australian arm, Optus which has been a key earnings driver recently.

No comments:

Post a Comment