Singapore Telecommunications

11 Dec. 2006,

Singapore Telecommunications have make the all time high again, base on the news that Merrill Lynch said it has upgraded its target price forSingapore Telecommunications Ltd to a "neutral" from a "sell" and lifted its target price to 2.92 sgd per share from 2.59 previously as it ascribed higher valuations for associates Bharti Telecom and Telkomsel. "While they remain bearish on the prospects for Optus, they are moving the SingTel recommendation from 'sell' to 'neutral' on the back of their upgraded valuation for SingTel's stakes in Telkomsel and Bharti," Merrill Lynch said in a note to clients. Both Bharti and Telkomsel are benefiting from strong mobile growth in India and Indonesia, respectively, which should enable the two companies to boost revenue and dividends in the coming years, it said. Such growth should help offset the prevailing weakness in Optus' earnings, it added.

Singapore Telecommunications had show their strength in their business. recent volume have surge, it believe that fund manager and other big players have enter a buy position on 11 Dec. 2006.

Philip Securities analyst Dennis Lee said SingTel was trading at a discount to
its peers elsewhere in Asia despite its strong fundamentals. Lee has a "buy" rating for the stock and in view of the outlook for the company, given the growth of associates such as Bharti in India, Telkomsel in Indonesia and Globe Telecom in the Philippines.

He said the company had revealed that it expected the performance of its
Australian unit, Optus, to improve in this quarter. "So, without Optus overshadowing SingTel, we think the valuation is currently undervalued and lower than its regional peers. That is driving the stock," Lee said.