It was probably a good idea that M1 delisted while it still could because things are not looking up for the two remaining listed telco stocks Singapore Telecommunications (Singtel) and StarHub.
Once upon a time, stocks of Singapore’s telco were “must-have” in the portfolio of investors given their consistent returns, earnings growth and attractive dividends. But things are very different now.
In the last five years, telco stocks have been lost their lustre due to intense competition in the mobile segments as several mobile virtual network operators (MVNO) have set up shop here. There is high competition in the Pay TV segment. And the Covid-19 pandemic has also further accelerated this downward trend.
