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Tuesday, November 20, 2007
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Equity News
Nov 20 2007 6:55AM
Singapore Hot Stocks-SingTel falls 2.7 pct on Indonesia ruling

SINGAPORE, Nov 20 (Reuters) - Shares of Singapore Telecommunications <STEL.SI> fell 2.7 percent to S$3.58 after after an Indonesian watchdog ruled that the Singapore company's stake in mobile phone firm Telkomsel violates anti-monopoly laws.

"The whole market is down, but SingTel is probably more affected by the Indonesian ruling," said a local dealer.

SingTel said on Tuesday that it plans to take necessary legal action to protect its interest in Indonesia

SingTel has a 35 percent stake in PT Telekomunikasi Selular (Telkomsel), Indonesia's biggest mobile phone firm, through its wholly-owned unit SingTel Mobile.

Indonesia on Monday ordered the Singapore government's investment arm Temasek Holdings [TEM.UL] to sell its stake in one of two major Indonesian mobile phone firms within two years. The watchdog also fined Temasek and various Temasek units, including SingTel Mobile, for a breach of competition law.

0110 GMT - Straits Times Index <.STI> down 1.77 percent, hurt by declines in Wall Street overnight, and SingTel's losses.

SingTel is the biggest company by market value on the benchmark index. (Reporting by Saeed Azhar)

(([email protected]; editing by Kevin Lim; Reuters Messaging: [email protected]; +65 6403-5664)) Keywords: SINGTEL INDONESIA/

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For more Singapore news, please click on <SINGAPORE/NEWS> Keywords: MARKETS SINGAPORE STOCKS/

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