Telstra is Australia’s largest telecommunications provider, with its main activities including the provision of; local and long distance telephone calls, mobile phone services, broadband access, search and information services, and the Foxtel cable service.
Telstra’s recent troubles are a major reason why it is currently one of the shares to sell.
Currently, it is involved in a fight with the Federal government over the breakup of its wholesale and retail businesses, and this is causing much uncertainty among investors.
It is this uncertainty that is contributing to the downward pressure on Telstra’s stock price.
The Federal government has postponed debate on breaking up Telstra until later this week.
In other news, Telstra has successfully completed a EUR1 billion bond issue.
The bond was around six times oversubscribed, which represents a successful foray into the debt market by Telstra.
The successful raising of such a large amount of capital is seen as a vote of confidence in Telstra among fixed-income investors.
Telstra’s share price has recovered somewhat from recent lows, however it is still in an overall downward trend, and the performance of the stock warrants its status as one of the shares to sell.