By Justina Lee


Singapore Telecommunications Ltd. shares rose in early trade Thursday after the telecommunications operator posted a higher net profit in its fiscal first half ended September.

Shares are up 3.1% at S$2.63 in mid-morning to trade, on track for their biggest one-day gain since May.

The company Thursday posted a first-half net profit of 1.17 billion Singapore dollars ($834.1 million), up 23% on year, supported by divestment gains.

Although the macroeconomic outlook has become more challenging amid persistently high inflation and rising interest rates, Singtel said it was well-positioned to weather the headwinds, given its robust financial position and cash generation.

Meanwhile, Singtel's declaration of an interim dividend of 4.6 Singapore cents a share and a special dividend of 5.0 Singapore cents a share "should be a welcome development for shareholders with balance sheet positioning improving materially [year-on-year]," Citi analysts say in a research note.

Citi maintains its buy rating and target price of S$3.16 for Singtel's shares.


Write to Justina Lee at justina.lee@wsj.com


(END) Dow Jones Newswires

11-09-22 2200ET