SingTel share price plunged to six year low
After leading SingTel to achieve an impressive record net profit of $5.45 billion for FY2018, CEO Chua Sock Koong must be stumped for words when SingTel share price plunged to a six year low on 18 June 2018. At $3.17 a piece, SingTel share price is technically entering into a bear mode territory. In the context of the current SingTel share price, is this counter a value buy or could it be a falling knife?
Many investors had pointed that the entry of fourth telco player could have played a part in the sharp decline of SingTel share price in recent months. But then again, the earnings from Singapore mobile market is significantly much lesser than that from its Australia Optus and Indonesia Telkomsel. In this regard, the current headwind should be due to its poor performance from its regional associates rather than the heightened competition in Singapore market.
Falling SingTel share price
At current dividend yield of 5.5%, SingTel share price is indeed alluring if you compared it to the coupon rates of the recent Astrea IV bonds and Singapore Savings Bonds. Barring unforeseen circumstances, the Group expects to maintain its ordinary dividends of 17.5 cents per share …