Telstra shares at record low
Shares in Australia's telecom giant Telstra Corporation Ltd (ASX: TLS) have plummeted to a record low, intensifying yesterday's loss of almost 10 per cent due to unsatisfactory full-year results.
Telstra on Thursday announced a slump in net profit and downbeat earnings guidance after an unexpectedly costly rejuvenation plan. The telco's stocks closed 31 cents or 9.54 per cent down to $2.94 yesterday.
This morning, shares lost as much as 12 cents or 4 per cent to $2.82. Telstra was the most exchanged stock by volume, with 79.9 million shares worth $229.4 million trading.
''We've already seen a great deal of disillusionment with Telstra,'' said City Index head of dealing Michael McCarthy.
''It topped out at around $8.50 many years ago.''
''It has been described as a stock that has to run furiously to remain in the same place,'' he said.
''Its major investment in the old copper network is quickly becoming obsolete.''
Telstra today announced it had signed a deal to sell its interest in a Chinese property website for around 62.6 per cent more than the amount the Australian telco paid for in 2006. This would return Telstra around $US413 million on the stake.
With dividends paid over the four years it held SouFun Holdings, Telstra said the deal meant the investment would give back about 75 per cent more than the acquisition price.
Under the agreement, Telstra would sell its 51 per cent stake in SouFun either in an upcoming float or privately at a guaranteed price.