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Singapore Hot Stocks-Telecom stocks fall on SingTel warning

Reuters - Tuesday, October 7

SINGAPORE, Oct 7 - Shares in Singapore's telecom firms StarHub <STAR.SI> and MobileOne <MONE.SI> fell on Tuesday after the country's biggest telecom Singapore Telecommunications <STEL.SI> warned of impact from the deepening financial crisis.

SingTel announced on Monday cost cuts as it said its operations were starting to feel some impact from the financial crisis, as the spectre of a global recession looms. [ID:nSIN138776]

"Generally the negative impact felt by SingTel will also affect other telcos in the region. But SingTel is still viewed as a defensive stock so it hasn't fallen too much," said a dealer with a Singapore brokerage.

At 0215 GMT, shares in StarHub were down 3.3 percent and MobileOne shares lost 2 percent. SingTel lost as much as 1.6 percent before paring losses to 0.3 percent with 9.4 million shares traded.

The Straits Times Index <.FTSTI> was up 0.06 percent.

Philippine telecoms also fell on Tuesday, with Philippine Long Distance Telephone <TEL.PS> down 2.4 percent and SingTel unit Globe Telecom <GLO.PS> down 1 percent, dragging the Philippine stock index <.PSI> 2.2 percent lower.

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