Telstra Experiences Resurgence in the Stock Market

Investors who have bought T2 shares from Telstra are expected to break even this week. For the first time, the telecommunications company has exceeded past its $4 mark at the stock market yesterday.

The company is experiencing a resurgence of up to 45 percent and analysts say that this can be attributed with the deal Telstra has made with NBN, a government-owned company.

Closing at the stock market yesterday, shares for Telstra traded for $4 for at least 30 minutes. It closed at $3.98, the first time in four years.

Shares of T2 went public in 1999 and investors paid about $7.40 each, before it plunged in the stock market, following the US dotcom collapse.

For the last three years, dividends were normally trading an average of $3.36, but with recent developments, the company is seen as “outperforming” the All Ordinaries.

On Thursday, Telstra is set to release its 2011-2012 results, where analysts predict the company will show a steady growth of mobile customers even as its fixed-lined customers have been declining.

This week, Telstra has also announced that it is appointing John Allan as the new head of Sensis, a division of the company. Allan, a former TV executive in New Zealand, will be in charge of Sensis’ media strategy.