SingTel    Last:4.18    +0.04

Singtel Bullish???

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forget to mention that the new fee structure not only lower profitability but highly likely to make capital recovery of infrastructure more difficult. the break even will be shifted later if there is still one.

 

first bid is of course costly for singtel. no doubt profit in sg going to be hit. the indian telco has 75mil subscriber and that is huge in terms of singtel overall subscriber base which is what is used to evaluate telcos potential. now 75mil crippled in singtel overall game plan... 

 

Badly hit by news from India indeed. Market is revaluing this stock....

 

haha...aya that EPL win comes at a HUGE COST fren !! dont sound like a winning move though :P perhaps after all the dust settled may be starhub will have the last laugh ??? heee... :D

jackjames      ( Date: 06-Oct-2009 15:44) Posted: almost $134 million dollars traded, no jokes... what's news? win EPL also drop, so cham...

 

epl accounts only for singapore, which is like a diminishing market for singtel. now india, the big market of singtel, kanna hamtam.

 

almost $134 million dollars traded, no jokes... what's news? win EPL also drop, so cham...

 

i think 3.04 is the safe loading... Singtel has 30% stake in bharti that is collapsing on indian market. Given the size of the investment, it not difficult to expect Singtel to lose 5% like 16 cents when bharti lost 12%. The worse thing is not the lost of share value but the lost of prospects in the indian market due to the lowering fees that would reflect significantly lower margins in futures. wont be surprise that bharti gets cut another 10% in the longer term.

 

BIG DEAL ! :D

erictkw      ( Date: 06-Oct-2009 15:07) Posted: Another forum talking about Bharti stock dived due to change of per min charge to per sec charge. Anyone has this news?

 

still alot buyer try to Q at 3.11....is a safe loading range i guess..as usually it falls between 3.15~3.10 then up again..

 

Singtel just had a 3 point drop shot. 

- new regulations triggered concern on its indian telco long term prospects as all telcos lowering fees




- MTN no longer in talk with its Bharti for deal.

- most importantly the share price of singtel investment in bharti just slided more than 12 %.

 

 

 * Bharti, Reliance Comm drop over 11 pct on falling tariffs

 * Rising competition to also hit telcos' revenue - analysts

 * Investors wary after sharp market rally this year
 (Updates to late morning)

 MUMBAI, Oct 6 (Reuters) - Indian shares gave up early gains
and fell more than 1 percent on Tuesday as leading mobile
operators Bharti Airtel (BRTI.BO) and Reliance Communications
(RLCM.BO) tumbled over 11 percent on worries falling tariffs
and increasing competition will hurt the sector's
profitability.

 Investors were also wary large hedge funds may start taking
profits after a sharp run up in the main index this year.

 "There are only two more months to go for foreign funds to
close their books and they will start to book profits now,"
said Arun Kejriwal, director at research firm KRIS.

 "Valuations, which earlier looked attractive, are starting
to look expensive now," he said.

 By 11:49 a.m. (0619 GMT), the 30-share BSE Index .BSESN
was trading down 1.04 percent, or 176.29 points at 16,690.12,
with 22 of its components losing.

 The benchmark has risen 75 percent so far this year and has
more than doubled since hit a 2009 low in March.

 The rally was powered by foreign funds who have bought a
net $12.7 billion of stocks so far this year after dumping more
than $13 billion in 2008.

 Kejriwal said there was also uncertainty about an economic
recovery being sustained.

 Shares in Bharti, which last week called off talks for an
alliance with South Africa's MTN (MTNJ.J), were trading down
12.1 percent at 351.85 rupees, on concern about long-term
outlook.

 Reliance Communications, the No. 2 mobile operator, on
Monday reduced call charges across networks to a flat 50 paise
(1 U.S. cent) per minute, heating up the tariff war in a market
that is getting increasingly competitive.

 Its move came after an almost similar tariff cut by Bharti
Airtel last month and analysts said other operators may have to
match it, clouding earnings growth prospects.

 "Any carpet reaction by the incumbents (to the Reliance
Communications move) remains a risk for sector earnings,"
Citigroup analysts wrote in a research note.

 Reliance Communications dropped 11.6 percent to 265.40
rupees.

 The telecom regulator plans to ask operators to bill
customers on a per-second basis from the current per-minute
billing, the local media reported on Tuesday, a move that could
hit revenues of companies. [ID:nDEL55860]

 "The policies that are coming may be good for the
consumers, but are bad for operators. Competition will only
intensify further," said V.K. Sharma, head of research at
Anagram Stock Broking.

 Other major losers were Reliance Industries (RELI.BO) that
fell 0.7 percent to 2,121.95 rupees and engineering and
construction firm Larsen & Toubro (LART.BO) down 1.2 percent at
1,635 rupees.

 Outsourcer Infosys Technologies (INFY.BO), which will
announce its quarterly results on Friday, was trading up 0.3
percent at 2,326 rupees, while defensive stock ITC Ltd (ITC.BO)
was up 2.1 percent at 243.45 rupees.

 In the broader market losers outpaced gainers 1,923 to 579
on moderate volume of 189 million shares.

 The 50-share NSE index  was down 1.35 percent at
4,935.85.

 STOCKS ON THE MOVE

 * Madhucon Projects (MAPR.BO) was up 2.2 percent at 257
rupees after its joint venture got a $3.9 million road project
from the Nepal government. Its shares had risen as much as 9.4
percent earlier.

 * Lupin Ltd (LUPN.BO) was up 4.3 percent at 1,220.50 rupees
after the drug maker received an upfront payment of $5 million
for giving exclusive U.S. rights to Salix Pharmaceuticals
(SLXP.O) for its drug delivery technology for use with diarrhea
treatment rifaximin.

 MAIN TOP 3 BY VOLUME

 * Bharti Airtel on 7.2 million shares

 * Ispat Industries (ISPT.BO) on 7.1 million shares

 * Reliance Communications on 7.1 million shares

FACTORS TO WATCH
 * For technical analysis double click on www.reutersindia.net
 * India rupee report                                   
[INR/]
 * India bond report                                     
[IN/]
 * Dollar falls on Gulf Oil report, RBA rate hike       
[FRX/]
 * Oil flat at $70, eyes U.S. stocks, dollar switch talk 
[O/R]
 * Dollar skids on Gulf oil report; stocks up      
[MKTS/GLOB]
 * Wall St rises on service data,earnings optimism        
[.N]
 * For closing rates of Indian ADRs                    
INADR
 (Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)

 

MUMBAI, Oct 6 (Reuters) - Indian shares turned negative in morning deals on Tuesday led by mobile operators Bharti Airtel (BRTI.BO) and Reliance Communications (RLCM.BO).

"The policies that are coming in may be good for the consumders but are bad for operators. Competition will only intensify further," said V.K. Sharma, research head at Aanagram Stock Broking.

Mobile operators have been cutting their call rates which could hit profitability and on Monday there were media reports that India's telecom regulator plans to ask operators to bill customers on a per-second basis from the current per-minute billing.[ID:nDEL55860]

The index had risen 0.67 percent earlier.

At 10.16 a.m. (0446 GMT), the 30-share BSE Index was down 0.5 percent at 16,779.50 with half its components down. The 50-share NSE Index was down 0.56 percent at 4,975. (Reporting by Janaki Krishnan; Editing by Jarshad Kakkrakandy)

 

Another forum talking about Bharti stock dived due to change of per min charge to per sec charge. Anyone has this news?

 

Somethings is wrong!!!

 

Singtel is dropping fast at HIGH vol and starhub start to CHIONG!!

 

wow..back from lunch..see this drop so fast..what happen? bad news?

3.11 now...time to load...

 

err...Singtel reach some agreement with Starhub to co-broadcast EPL soccer matches live for 2010 ?!??! :P

 

what happen ?

be4 lunch was 323 

 

SingTel
Won the rights for Barclays Premier League

Rights for Barclays Premier League (BPL).
SingTel announced that it had won the bid for the rights to BPL matches for a period of
three years beginning August 2010. SingTel had beaten StarHub for the rights and the amount
of the bid was not disclosed.

Impact from the win. We expect the revenue contribution from mioTV to increase significantly
from FY2010. This is because we anticipate a large number of BPL fans to switch from
StarHub’s cable TV to SingTel’s mioTV in 2010. In fact, we are projecting mioTV revenue
of S$89m, S$295m and S$335m for FY2010F, FY2011F and FY2012F respectively. As SingTel
will not charge more than the existing payment by StarHub customers for BPL matches and it
paid a higher bid for the rights, we anticipate that it is likely to suffer a loss from offering BPL matches.
However, we expect SingTel to benefit by gaining new customers from the offer of bundled mobile,
Pay TV and broadband services to customers.

Merger between Bharti and MTN. Moreover, SingTel’s 30.4% owned associate, Bharti, announced
that the merger between Bharti and MTN was not accepted by the South African government. This
meant that SingTel’s interest in Bharti would not be diluted.

Maintain BUY recommendation and target price at S$3.80. Although SingTel paid a high price for the
rights to BPL matches, it is likely to gain from strengthening its position as the number one
telecommunications provider in Singapore. Furthermore, we expect SingTel and its regional mobile
associates to benefit from the recovery in the global economy and report higher revenue and profit.

Therefore, we maintain our buy recommendation and target price at S$3.80.

2 October 2009 Phillip Securities

 

01 October 2009 10:24