Are Singtel’s forex troubles overhyped?

Analysts say investors have the wrong idea.

Investors have been having second thoughts about how the telecommunications giant would fare against a depreciating Chinese renminbi and the competitive devaluation of regional currencies. However, this may not be the case.

According to analysts from UOB Kay Hian, the Singapore dollar has also been depreciating parallel to regional currencies, which means there is minimal effect on SingTel's overseas earnings.

Meanwhile, Singtel has also been recording growth from its regional mobile associates Telkomsel in Indonesia, Bharti Airtel in India, Advanced Info Service in Thailand and Globe Telecom in the Philippines.

"In particular, Telkomsel and Bharti Airtel have registered data traffic growth of 131% and 183% yoy, respectively, and data revenue growth of 45% and 67% yoy," said UOB Kay Hian.
 

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Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley