Australian telecommunications has underperformed against the ASX All Ords for the first time in two years, according to figures released yesterday.
The fourth Deloitte Telecommunications index reveals growth of the ASX-listed Telcos Index was -6 per cent, Telstra's growth was -7 per cent and the ASX All Ords remained stable with zero growth.
Deloitte's telecommunications partner, Peter McIvor, said uncertainty over inflation and US interest rates had affected the ASX, causing lower than normal performance for the telco stocks.
"There was a general flattening of telecommunications and the All Ords," McIvor said.
However, McIvor said the figures were "a short-term aberration" and should return to positive growth in the next six months.
Additionally, recent takeover bids such as C&W Optus and Telecom NZ's bids for AAPT, as well as the Telstra 2 selldown, have slowed down the market.
"Telco stocks are still very solid performers," McIvor said.