Buy on rumour! Sell on fact! A dictum that is so often born out by market responses.
Telstra’s share price has risen 27c in the past three weeks, to $3.87, against the tide of price weakness in the rest of the market.
Telstra had earlier flagged negotiations with Vodaphone over the sale of Telstra Clear its NZ subsidiary, but only today announced the sale at what is thought to be a favourable price of A$660. Might the share price now weaken?
In amongst the “good news” is a comment that unrealized foreign exchange losses of A$260million would be written off over a 2 year period. No details of these losses have been given. Just an accounting adjustment!