3 Telecommunication Stocks In Singapore | SGX Stock List
Telecommunication stocks in Singapore are generally defensive stocks. The reason is simple. Singapore, a densely populated island of 5.6 million people, has one of the highest mobile penetration rates in Asia, with 8.3 million subscriptions as of September 2016, meaning many consumers have more than one account. With a strong local demand, telecommunication stocks in Singapore generally perform quite well and consistently over the past 15 years.
Telecommunication Stocks Performance
Below shows a table of 3 telecommunication stocks publicly listed in SGX which span across the telecommunication market industry
|Company Name||Code||Industry||Mkt. Cap.in S$ mm||Tot. Rev.in S$ mm||P/E||Div. Yld.in %|
|M1 Limited||B2F||Wireless Telecommunication Services||1,673.4||1,075.2||12.439||6.15%|
|Singapore Telecommunications Limited||Z74||Diversified Telecommunication Services||61,234.3||17,035.7||15.995||4.67%|
|StarHub Ltd.||CC3||Wireless Telecommunication Services||4,426.4||2,391.5||14.889||7.03%|
Source : SGX Singapore (updated 19 August 2017). Note: Above SGX stock list of Energy stocks was sorted out based on the PE Ratio listed in ascending order. Do your own due diligence before investing.
Dividend Play For Telecommunication stocks
As Singapore STI index is creeping up to its current peak, it may be more interesting to look at defensive stocks such as telecommunication stocks now. The upside growth for capital stock appreciation is getting lesser with a more unpredictable global landscape. This led me to look into dividend play more these days. As you may know, Singaporeans cannot live without a day of mobile phone and this is a good and profitable business to the current three telcos. You can see that the dividend yield for these 3 telco stocks are ranging from 4.67% to 7.03% though P/E ratio is exceeding 10. Use the dividend play strategy may be a good move. Invest with care when the price entry is right for you.
New Telecommunication Market Player
Late last year, the Infocomm Media Development Authority (IMDA) granted Singapore’s fourth mobile operator license to an Australian firm TPG Telco. TGP had put in a S$105 million bid for rights to operate in Singapore’s mobile spectrum, where pioneer SingTel remains the dominant player. What will this means to our three local telecommunication market players, namely Singtel, M1 and Starhub? It is not difficult to expect TGP to pose a threat to these telcommunication market players. It will result more innovation and competition in the Singapore’s mobile market.
With our growing digital economy and the smart nation initiative strongly supported by our Singapore government, the Internet of things (IOT) will be the next wave of growth. Both public and private sectors are chasing for solutions to achieve these common goals. Henceforth, Singapore telecommunication market should be able to accomodate these four major telcommunication players in years to come. Perhaps in 3 years or so TPG Singapore may be the fourth listed SGX stock which in the business of providing telecommunication services. The ultimate winners will be Singaporeans who will be benefited from a more diversified mobile market.