Index continues slow slide

Telecom Asia, Dec, 2005

The TA Index ended eight points or 0.68% lower, extending its fall for a third consecutive month. Decliners outnumbered gainers 18 to 10, with two stocks unchanged.

Leading the winners was Hong Kong-listed APT Satellite, which climbed 19.2%, alter a 4% loss the previous month, on the back of news that a number of TV broadcasters in China and Indonesia signed up to use its newly launched satellite, APSTAR VI. SmarTone, China Mobile, China Netcom and China Unicom also closed higher, rising from 3.3% to 6.8%. Hutchison and PCCW both lost ground.

In Japan, NTT rose 8.8% further after the company raised its profit forecast and tmveiled a new strategy to boost its competitiveness. NTT DoCoMo fell 3.5% and rival KDDI fell slightly as the Japanese government opened up its mobile market to three new players--Softbank's BB Mobile, e-mobile and IP Mobile, which will offer W-CDMA and TD-CDMA services next year.

The Australian market closed mixed, with Telstra rebounding 4.6% from a loss of 7.2% a month earlier. Optus declined 1% amid news that the company has been forced to take cost-cutting initiatives after intense competition caused a second consecutive quarterly decline in net profit.

Optus parent SingTel fell 1.6%--its fourth straight monthly decline--despite posting better-than-expected results, with net profit for the July-September quarter up 5.7% year-on-year to $475.4m.

In Taiwan, incumbent Chunghwa Telecom and Far Eastone moved higher while Taiwan Mobile fell 2.9%.

The Thai market also closed mixed, with AIS unchanged and Shin Sat and Samart Telecom both losing ground.

South Korean shares ended lower, led by Dacom, which declined 11% after a 12% gain a month earlier. SK Telecom lost 5.7%, a second consecutive loss. Rival KT, which posted a 4% increase in 3Q net profit, slipped 5.4% after rising 5% the previous month.

DOWN             0.68%
TA30 INDEX       1,230
RISING STOCKS       10
FALLING STOCKS      18
UNCHANGED            2

     Company            Country   % change

1    APT Sat            HK        19.2
2    NTT                JP        8.8
3    China Mobile       HK        6.8
4    SmarTone           HK        5.5
5    Telstra            AU        4.6
6    China Netcom       HK        4.6
7    China Unicom       HK        3.3
8    Chunghwa Telecom   TW        2.8
9    Pacific Internet   us        1.2
10   FarEastone         TW        0.7
11   PLDT               PH        0
12   AIS                TH        0
13   PCCW               HK        -0.4
14   KDDI               JP        -0.7
15   SingTel Optus      AU        -1
16   Globe Telecom      PH        -1.4
17   Hutchison          HK        -1.5
18   SingTel            SG        -1.6
19   Samart Telecom     TH        -2.4
20   Taiwan Mobile      TW        -2.9
21   Telecom NZ         NZ        -3
22   NTT DoCoMo         JP        -3.5
23   China Telecom      HK        -4.7
24   Shinawatra Sat     TH        -5.2
25   Telkom Indonesia   ID        -5.3
26   Korea Telecom      KR        -5.4
27   SK Telecom         KR        -5.7
28   Telekom Malaysia   MY        -10.5
29   Dacom              KR        -11
30   Indosat            ID        -11.6