SingTel is down 0.6% to $3.17 after reporting fiscal-2Q13 net profit fell 1.6% on-year to $868 million, mainly on a lower contribution from its Australian unit, Optus. The results were generally in line with expectations, says Carey Wong, an analyst at OCBC.
“There’s not much going on with SingTel,” he says. “Again they’re saying weaker regional currencies are having an impact and the Singapore dollar has been very strong. So that shouldn’t come as a surprise,” he says.
He says the company has “done pretty well,” noting “it’s the same for all the telcos. They generally have very good cash flows. These guys are very defensive, so we don’t expect earnings to drop significantly.”
The stock appears likely to stick to its recent $3.13-$3.24 range.
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