Forum Archive Index - July 2000

[Brian Gale <brigale@i4free.co.nz>]

Not sure how to do the calculation.......... but the following may be of
interest

. By a considerable distance (27% weight compared with the second largest
at 6.7%), Telecom has the largest weighting in the NZSE40 index. Its
return trend can be expected to strongly influence the return track of
the NZSE40. 
Telecom's price has fluctuated between $7.30 and 9.80 over the last three
years (now $7.50) while consistently paying an annual dividend yield of
about 5-6% (100% imputed). Volatility in Telecom's price appears to be
driven primarily by the:

·       

perception
of the level of future industry competition and regulation;

·       

costs
of its Australian expansion plans;

·       

market
reaction to senior management transition in 1999 and consequent results;

·       

flattening
profit growth profile; and

·       

relativity
with other telcos globally. 


At 16:40 07-07-00 +0200, you wrote:
> If it weren't for telecom's languishing share
> price, just how high would the
> NZSE have risen in the last couple of months? WHS and FEG in particular
> have
> soared, and the rest of the top 10 seem to have done well in recovering
> from
> their year lows as well. Can someone calculate where the NZSE40 would be
> if
> TEL was at 800 or 900?
> -- 
>
>
>
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