Telcos emerge as defensive options after sharp sell-off

Rate hike fears are overdone, analysts say.

Telcos could prove to be valuable anchors in the face of heightened market volatility, according to a report by OCBC Investment Research.

OCBC said that the sharp share price correction in recent sessions is overdone, as telcos provide a defensive business despite increased economic turbulence.

“With the recent global market turmoil, coupled with the devaluation of the CNY against the USD, the odds for a rate hike in Sep seem to have dropped; some market watchers also believe that the quantum of hike has also been reduced. As such, we believe that the current yields have reached pretty attractive levels,” OCBC said.

“Overall mobile market continues to remain stable, [and] the three telcos are optimistic about rising data usage and further improvements in ARPUs. Hence even in an increasingly uncertainty economic environment, we believe that the main mobile business should do relatively well,” OCBC noted.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. 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