Singtel falls up to 3% after $2.3 bln impairment

Shares of Singapore Telecommunications (Singtel) (STEL.SI), opens new tab fell as much as 3.3% on Monday to a more than one-week low after it forecast non-cash impairment provisions of S$3.1 billion ($2.28 billion) for the second half of 2024.

Shares of Singtel were down 2.5% during Monday midday at S$2.35 per share, underperforming the broader benchmark stock index's (.STI), opens new tab 0.2% decline.

"Singtel highlighted that this won't impact its dividend which is based on 70% to 90% of the underlying net income while the non-cash impairment charges will be booked as one offs," Maybank Research analyst Hussaini Saifee wrote in a research note on Monday.

Maybank Research (MBBM.KL), opens new tab reiterated its buy rating on Singtel with an unchanged price target of S$3.05.

"Singtel is on track to pay at the upper end of its dividend policy for the financial year ended 31 March 2024," the Singapore-based telecom firm said.