Telcos rising -- but not enough

The telcos also played "second fiddle" to media stocks which were all the rage after the AOL-Time Warner deal earlier this year, said Deloitte telecommunications partner Peter McIver.

McIver said that the telcos' performance, led by Hutchison, Cable & Wireless Optus, and AAPT, was overshadowed by the media index which rose a massive 91 per cent - in no small part due to Rupert Murdoch's News Corp which has almost doubled in price this year.

For the year from March 1999 to March 2000, the ASX Telco Index gained only 13 per cent, in contrast to a 100 per cent increase in the Nasdaq Telco Index in the US, and a 70 per cent increase in the FTSE Telecom Services Index.

Telstra's heavy weighting (66.85 per cent) on the ASX Telco Index, and its flat share price over the past six months, caused gains made by the ASX index to lag behind the rest of the world, McIver said.

"Australian investors have moved to media companies that own content and are in good shape for convergence," McIver said.

He said the Deloitte index showed all but one of the eight major listed telcos increased in share price in the past six months, led by Hutchison (135 per cent) and Cable & Wireless Optus (96 per cent).

Telstra was the only major telco to decline in share price, with a minor 1 per cent fall despite its record half-year profit, McIver said.

Telco companies that Deloitte has been advising have been using merger and acquisition strategies, new technologies and strategic alliances as tactics to transform themselves into fully integrated service providers (FSPs) to maintain market relevance, McIver said.

Meanwhile, this Monday the ASX will launch three new technology indices in conjunction with ratings company Standard & Poor's. The indices will include the top 100, 200 and 300 companies.

And in the US, Morgan Stanley Dean Witter has formed the Morgan Stanley Internet Index, which was published on the American Stock Exchange this week under the ticker symbol MOX.

Options on the index will begin trading by April 10. Initially, the index will comprise 28 high-market-capitalisation internet stocks drawn from nine sub-sectors, including infrastructure/services, consulting/services, portals, commerce, internet B2B software, B2B commerce and multi-sector net companies. Morgan Stanley said the number and types of companies on the MOX would change as net-related businesses evolve.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

David Smedley

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?