It’s proving to be a rough day for the telco giant.
The post Why is the Telstra share price lagging the ASX 200 on Thursday? appeared first on The Motley Fool Australia. –
The Telstra Corporation Ltd (ASX: TLS) share price is trading in the red on Thursday despite the S&P/ASX 200 Index (ASX: XJO)âs day in the sun.
In fact, the telecommunications giant is its sectorâs worst-performing stock right now.
At the time of writing, the Telstra share price is $3.905, 0.38% lower than its previous close.
For comparison, the ASX 200 has gained 0.63% so far today, while the S&P/ASX 200 Communication Index (ASX: XTJ) is up 0.58%.
So, what might be going wrong for Telstra shares? Letâs take a look.
What’s going on with the Telstra share price?
The Telstra share price is struggling against its ASX 200 peers on Thursday despite no news having been released by the telco giant.
In fact, the last time the market heard price-sensitive news from the company was a fortnight ago when it announced it had completed its acquisition of Digicel.
Though, a deal between the telco and tech giant Microsoft was announced earlier this week. Telstra CEO Andrew Penn said the agreement â one of the largest Microsoft has ever signed with a telco â is âon a scale not seen before in Australiaâ.
Sadly, news of the deal didnât bolster Telstra’s stock. It’s fallen 1.4% this week so far.
Meanwhile, many of its ASX 200 communication peers are well and truly in the green today.
The communication sector is being led by shares in Domain Holdings Australia Ltd (ASX: DHG) and SEEK Limited (ASX: SEK). Theyâve gained 4% and 3.6%, respectively, at the time of writing.
Fortunately, this weekâs struggles havenât seriously dented the companyâs longer-term performance.
The Telstra share price has outperformed the ASX 200 year to date, falling 7% compared to the indexâs 10% tumble. The stock is also currently almost 4% higher than it was this time last year.
The post Why is the Telstra share price lagging the ASX 200 on Thursday? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
