Starhub has plunged 30.3% from an intraday high of $3.96 on 3 Aug 2016 to trade $2.76 today. This is near a five year low.
What has caused the sharp fall in Starhub?
Some of the possible reasons may be
- Market is pricing almost a 100% chance of a rate hike in Dec. Furthermore, there seems to be rising interest rate expectations on faster than expected tightening in 2017;
- After IDA’s announcement on 16 Nov 2016 that MyRepublic and Australian telco TPG Telecom will get to participate in the 4G mobile airwave auction slated to complete by next month (December), most analysts believe M1 and Starhub will be more affected than Singtel. Some of them have subsequently reduced their target prices.
Although most analysts believe that M1 may be the most affected with the entrant of a 4th telco, Starhub seems to have …