Big telco stocks on SGX saw twice the return compared to regional peers

SINGAPORE - Major telecommunications stocks listed in Singapore have yielded over double the annual return of their regional peers, the Singapore Exchange said in a report on Wednesday (Jan 14).

The average annualised return of SingTel, Starhub and M1 averaged a 17 per cent annualised return over the three years ending with 2014, compared to the 8.1 per cent return generated by similar stocks across Southeast Asia in the same period, SGX said in its latest My Gateway report.

The three telcos are among the five largest telecommunication services stocks that maintain a capitalisation over $200 million here, along with euNetworks Group and Polaris.

The five counters generated an average total return - including dividend - of 13.6 per cent in 2014. However the segment saw a 0.7 per cent decline in the year so far.

My Gateway reports are part of SGX's initiatives to engage and educate investors on market trends, as the bourse continues its efforts to build up retail investor interest in the local market.

A notable development in the telecom sector is euNetworks Group, SGX noted in the report today. The fibre network company saw its shares soaring since mid-November last year, after EUN Holdings launched a mandatory cash offer to acquire all its shares on November 17.

The offer price of $1.16 was a 32.5 per cent premium over $0.875 at euNetworks' last close prior to the offer announcement, and prices have stayed around that level since then.