Singapore, Feb 7, 2026, 14:55 (SGT) — Market closed.
- Singtel shares slipped 1.3% to finish at S$4.72 on Friday.
- After soaring to a record on the STT GDC deal earlier this week, shares have now fallen for two straight sessions.
- While target prices got a bump from analysts, they cautioned about how execution could play out and warned of some short-term earnings dilution risk.
Singapore Telecommunications Ltd slipped 1.3% to S$4.72 by Friday’s close, notching a third straight fall after touching a new high earlier this week following its data centre deal with KKR. Singapore markets are off for the weekend, leaving traders waiting to see on Monday if buyers step in—or if the drop sticks.
This shift carries weight: Singtel has turned into a go-to for Singapore investors chasing reliable dividends, plus it’s seen as a straightforward bet on the region’s data centre expansion linked to cloud and AI computing.
The combo clicked during the stock’s climb. But in the past two sessions, momentum unraveled fast as investors recalculated financing, capex, and timelines.
Singtel finished at S$4.91 on Feb. 4, having reached as high as S$4.95 earlier in the session. The stock dropped 2.7% on Feb. 5, followed by another 1.3% slide the next day, price data show. Volumes remained elevated through the volatility—suggesting something more substantial than just small investors at work.
The spark? A plan from the consortium to snap up the rest of ST Telemedia Global Data Centres (STT GDC) through a S$6.6 billion all-cash offer. That deal pins STT GDC’s enterprise value at S$13.8 billion. Singtel’s investor slides note the payment splits into two tranches, each equal. The group has lined up S$5 billion in debt, while Singtel’s share comes to S$740 million in cash.
Most analysts see logic in the deal, despite some cooling in the share price. Prem Jearajasingam at CGS International bumped his target up to S$5.34. HSBC, for its part, increased its target to S$5.20, according to The Business Times.
Even so, some analysts aren’t buying the idea of effortless gains. Dan Baker, senior equity analyst at Morningstar, told The Business Times the acquisition might be “mildly” dilutive to earnings per share in the short run—EPS referring to profit divvied up per share. Maybank Securities’ Hussaini Saifee, in the same report, pegged the potential hit at 1% to 2% on a pro-forma basis.
Some brokers welcomed the extra runway. “We view the transaction positively as a growth funnel for Singtel post ST28,” PhillipCapital’s Paul Chew told The Edge Singapore. Over at DBS, analyst Sachin Mittal described it as a “long-term growth driver at a small cost,” highlighting the EBITDA valuation multiple baked into the deal price—referring to earnings before interest, tax, depreciation and amortisation, a typical operating profit gauge. The Edge Singapore
Piyush Choudhary’s team at HSBC is forecasting gains in operating profit and bumped-up dividends through the next two fiscal years, The Edge reported. These numbers, however, are analyst projections, not official company guidance.
Here’s the risk: STT GDC is losing money for now, and this deal isn’t lightweight—it drags in financing needs and fresh build-out requirements, both of which could swing quickly if borrowing gets pricier or data centre rates dip. Any earnings hit, however minor, stands out when the stock trades on its reputation as a defensive dividend play. Plus, there’s still the regulatory sign-off to get through.
Looking to the coming week, investors are set to watch Singtel’s handling of capital returns versus reinvestment. The company’s documents pointed back to its ST28 plan, reaffirming both its dividend policy and growth targets. Still, markets often put such assurances under pressure whenever volatility rises.
Singtel’s upcoming earnings, now slated for Feb. 18 on Investing.com’s calendar, stand as the next major test for the stock. Investors will be watching closely for any shifts in guidance on Optus, NCS, and capital returns. The company’s update may also shed more light on its STT GDC timeline.
