SingTel shares fall to record low Brought to you by SYDNEY --------------------------------------------------------------------- Shares in Optus' parent company Singapore Telecommunications Ltd fell to a record low on Friday amid news it will be removed from a provisional key stock market index. --------------------------------------------------------------------- Shares in Singapore Telecommunications fell seven cents, or 4.76 per cent, to $1.40 on heavy turnover of 16 million shares. --------------------------------------------------------------------- That was the lowest level since SingTel, which took over Australia's second biggest telco Optus in August last year, listed on the Australian Stock Exchange in August 2001. --------------------------------------------------------------------- Index compiler Standard & Poor's (S&P) recently completed a quarterly review of the companies on its indices and released a list of those that will be affected. --------------------------------------------------------------------- The S&P lists also showed that the telcos Singapore Telecommunications and Hutchison Telecommunications are likely to be high-profile omissions from the S&P/ASX 200 when the index converts to a free float system in October. --------------------------------------------------------------------- Free float means that when S&P calculates a company's value on the stock market it discounts shares which are not freely tradeable, such those held by entrenched shareholders or the government. --------------------------------------------------------------------- The dilution of market capitalisation means that Singtel and Hutchison would not make the cut for the benchmark index, indeed Optus-owner Singtel would be removed from all S&P indices because of the large shareholding owned by the Singaporean government. --------------------------------------------------------------------- An S&P spokesman said unless the companies' ownership structures altered radically over the next three months they would not be included on the benchmark. --------------------------------------------------------------------- He said the switch to free float would impact on institutional investors such as fund managers and had no implications for retail investors. --------------------------------------------------------------------- In other S&P ASX changes, Macquarie Airports (MAp) gained a place in the benchmark ASX/S&P 200 Index. --------------------------------------------------------------------- The airport investment vehicle, managed by Macquarie Bank, is in the Southern Cross consortium bidding for Sydney Airport. --------------------------------------------------------------------- MAp is one of three companies that will be added to the benchmark S&P/ASX 200 next month. BHP Steel Ltd and food processor SPC Ltd are the other newcomers. --------------------------------------------------------------------- Software company Altium Ltd, energy explorer Auiron Energy Ltd and Simeon Wines Ltd will all be removed from the index. ---------------------------------------------------------------------
SGT Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
