Telcos' net institutional inflows surged to $55.9m over 5G roll-out

The sector reversed September’s outflow of $41.4m.

Telcos attracted net institutional inflows of $55.9m in October 2019, emerging as the top net buy sector after the government’s announcement of 5G roll-out, according to SGX. The sector reversed September’s outflow of $41.4m.

Singtel garnered the highest inflow amongst stocks at $71.5m.

The three telco players averaged a total return of 3.7% for the month, bringing their YTD and one-year total returns to 6.7% and 3.9% respectively. In YTD 2019, Singtel and NetLink emerged as the strongest performers, with total returns averaging 16.3% and 25.2% respectively.

Last month, the government announced plans to issue licences to operate two nationwide 5G networks and two smaller ones with limited coverage.

The three largest telcos on SGX, Singtel, NetLink and StarHub, have a combined market cap of about $60b.