Singtel share price in for terrifying ride
What a perfect storm for Singtel share price. Singtel share price is set to face reality once more as the telco announced a set of disastrous Q3FY2019 financial results which saw most business units reporting declining profits. Net profit declined 14% to $823 million due to increased competition in India. In my last article on Singtel share price, I predicted that this counter would enter 2019 in bad shape. Indeed, Singtel share price plunged to $2.86 on 3 January 2019 and only recently recovered to the $3.00 level. However, the recent financial results would likely roil Singtel share price again.
It appears to me that Singtel share price is set for a roller coaster ride as the Q3FY2019 results fell short of many analyst estimates. Most business units reported declining profits on year-on-year basis. To make matters worse, the latest results marked the fifth consecutive quarter of declining profits. The last time that Singtel recorded an improving quarter of profit was when it sold off majority stake in NetLink Trust. And that was in 2017.
Investors would note that Singtel share price has been bearish in recent months. Nonetheless, the M1 general offer had led to a mini-recovery for Singtel share price because many observers deemed that the industry consolidation would benefit Singtel.
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