SINGAPORE (July 12): OCBC has cut Singapore Telecommunications to a “hold” recommendation from a “buy” as its shares have surged 11.8% since the Brexit vote last month.

SingTel is widely considered a safer bet during economic turbulence as its core business is largely protected from business cycles.

Using the Singapore government 10-year bond as a proxy for risk-free interest rates, OCBC finds the fair value of SingTel shares rises to $4.29 from $4.10 after bond yields fall due to increased volatility in global markets after the Brexit vote.

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