Defensive telcos hounded by Fed rate hike fears

Should investors be spooked?

Telco stocks are often favoured for their defensive nature and stable dividend yields. However, this attractive trait is now being eroded by fears of an interest rate hike by the US Federal Reserve.

OCBC Investment Research notes that while rate hike fears are a key detriment to the attractiveness of telco stocks, investors should think twice before moving their funds from this defensive sector.

“From the latest set of sluggish economic data out of the US, market watchers have pushed back the likelihood for a rate hike to 3Q or 4Q 2015. And even if there is a rate hike then, most market players believe that the Fed would still adopt a “wait and see” approach and not push for a series of rapid rate hikes in succession. As such, we do not expect the telcos to lose much of their relative attractive against other safe investment options like fixed deposits,” said OCBC.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia