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Highlights
- Communication stocks are crucial for the steady growth of a country, which appeals to both income-oriented as well as growth-oriented investors.
- Spark New Zealand discloses the purchase back of 50% shares in Connect 8.
- Chorus would unveil its six-month results in February next year.
Communication companies are a necessary tool required for the smooth conduct of business as well as the economy.
They not only satisfy the fundamental need to connect and communicate but are also vital to the security and safety of a country.
Moreover, the importance of these communication stocks has grown manifolds during the times of pandemic as they aid in online learning, work from home, digital shopping, etc.
That said, let us look at the two most popular NZX-listed communication stocks.
Source: © 2021 Kalkine Media® data source- EODHD/Others
Spark New Zealand Limited (NZX:SPK; ASX:SPK)
The leading telecom service provider across the Kiwi nation is Spark New Zealand Limited. Just a few days ago, SPK had revealed that it had entered into a conditional agreement with Electra Group, an electricity distribution company, to buy back its 50% stake in Connect 8.
Must Read: Which 3 NZX telco stocks to look at in 2022?
The transaction, which is expected to settle by early 2022, will again make Connect 8 to be wholly owned by Spark.
On 31 December, at the end of the market session, Spark New Zealand dipped by 2.16% at NZ$4.52.
Chorus Limited (NZX:CNU: ASX:CNU)
Another prominent communication-focused NZ company is Chorus Limited, Chorus Limited that aims to cover about 90% of the Kiwi households through its network by the end of 2022.
Do Read: Why are NZX telcos turning heads in 2021?
Recently, it has announced to unveil its half-yearly results, ending 31 December 2021, on 21 February next year.
A briefing for the same will be held in the morning on the said date.
On 31 December, at the end of the market session, Chorus fell by 0.28% at NZ$7.170.
Bottom Line
Communication stocks have potential to exhibit stable long-term benefits and are the backbone of a country.