Why is the Telstra share price trailing the ASX 200 on Monday?

A man talking on his mobile phone looks uncertain

A man talking on his mobile phone looks uncertain

The S&P/ASX 200 Index (ASX: XJO) is having a very pleasing start to the week so far during this Monday’s trading session. At the time of writing, the ASX 200 has gained a healthy 0.44% and is back over 6,920 points. But we can’t say quite the same for the Telstra Corporation Ltd (ASX: TLS) share price.

Telstra shares seem to have gotten up on the wrong side of the bed this morning. While the markets were enjoying some time in the sun. Telstra shares opened at $3.88 this morning, below the $3.90 the ASX 200 telco closed at last week.

After a brief stint in positive territory around lunchtime today, the Telstra share price is back in the red so far this afternoon and is now going for $3.89, down 0.13% for the day.

So what might be happening with Telstra shares that have excluded this company from the gains the broader market is enjoying?

Why is the Telstra share price having a stroppy Monday?

Well, it’s hard to say. Telstra hasn’t put out any news or announcements today. Or indeed, over this month so far. But we can see that it’s not just Telstra that the markets are feeling lukewarm about this Monday. Telstra’s fellow telco TPG Telecom Ltd (ASX: TPG) is also having a lacklustre day. Its shares are presently flat at $4.82 each.

Aussie Broadband Ltd (ASX: ABB) is faring worse again. The Aussie Broadband share price is currently down by a nasty 2.39% at $2.45 a share.

That’s despite no news out of any of these companies either.

So we can only conclude that the markets just aren’t in a buying mood when it comes to ASX communications shares. Indeed, the communications sector is one of only four ASX 200 sectors in the red today. So it doesn’t seem to be a Telstra-specific problem that is dampening investor appetites for the telco’s shares this Monday.

At the current Telstra share price, the ASX 200 telco remains down by 7.6% in 2022 so far. Telstra has a trailing dividend yield of 4.23% at this share price.

The post Why is the Telstra share price trailing the ASX 200 on Monday? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of November 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eACJ93F

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s