Telstra sinks to five-year low

Telstra's share price sank to its lowest point for five years yesterday as the Prime Minister ruled out a further government sale for the time being. More than 51.9 million shares were traded, worth over $230.3 million, with the price closing six cents down at $4.38. This is the lowest level since December 1997.

The sell-off was due not only to the postponement of the third tranche sale of the Government's 50.1 per cent stake, but also to the telco's predicted lack of growth ahead, analysts say.
Mr Howard said the T3 sale will not go ahead until the Government is satisfied that Telstra's services to country areas are “up to scratch”.