Singapore Telecommunications Ltd's failure to win a
licence in Myanmar could turn out to be a boon as it will not
have to commit huge investment in an opaque regulatory
environment, said Maybank Kim Eng.
"We believe this is a better outcome for SingTel as it will
not have to spend billions for a long-dated result, but now have
the opportunity to work with the winners to help them build out
the necessary infrastructure, thus ensuring positive returns
almost immediately," Maybank said in a research note.
Myanmar awarded two telecommunications services licences to
Norway's Telenor and Qatar's Ooredoo, and
picked the partnership of France's Orange and Japan's Marubeni
Corp as a back-up.
SingTel, the worst performer among Straits Times Index
components on Friday, dropped as much as 1.6 percent to
S$3.66, before paring some losses to S$3.70.
Maybank upgraded SingTel to "hold" from "sell" with the
target price pegged at S$3.50.
Yoma Strategic Holdings, which was a part of
Digicel-led consortium to bid for one of the two Myanmar
licences, lost as much as 6.8 percent to a two-week low of