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Chart of the Week: Singtel Shares Back in Favour

Singapore Telecommunications Limited (SGX: Z74), or Singtel, has fallen out of favour with investors over the past few years as worries over the impact of a price war on its Indian subsidiary (Bharti Airtel) and the imminent arrival of a fourth telco in Singapore, among other factors, weighed on its share price. However, more recently it has bounced back to touch a one-year high amid signs of a turnaround in several of its regional associates and given its defensive nature in times of market volatility.

In fact, the past six weeks has been a solid period for Singtel as its stock price has risen nearly 11% from S$3.19 on 3 June to close today (12 July) at $3.54 (see below) – outperforming the 7.3% return of the FTSE Straits Times Index over the same period.  And with a promise from Singtel management to continue to pay out an annual dividend of 17.5 Singapore cents per share for the next financial year (giving it a current yield of 5%), investors may perhaps be thinking whether Singtel shares are worth revisiting.

Singtel share price

Source: CapIQ as of 12 July 2019

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Tim Phillips doesn’t own shares in any companies mentioned.