The All Ordinaries Index (ASX: XAO) had yet another disappointing day of trading this Wednesday on the ASX boards. The All Ords finished up at 7,704 points on the dot today, down 0.56% from where it closed at yesterday. But one ASX share had a completely different experience today, one that would delight shareholders no less. That would be the Aussie Broadband Ltd (ASX: ABB) share price.
Aussie Broadband shares had a day to remember today. This mid-tier telco finished up the days trading at a share price of $5.27 – up a very pleasing 7.33%. Not only that, in intra-day trading, Aussie Broadband also managed to hit $5.40 a share. That’s a new 52-week and all-time high for the company.
So what went so right for Aussie broadband today?
Well, unfortunately, the answer is a resounding ‘no idea’.
Aussie Broadband share price gains remain a mystery
There has been no news or announcements out of the company today of any kind. Indeed, the last announcement Aussie Broadband made to the public markets was back on 28 October, outlining the results of its annual general meeting.
Before that, the last major development we got with Aussie Broadband was the news that it had put up an indicative and non-binding offer to purchase Over The Wire Holdings Ltd (ASX: OTW) for a price of $5.75 per share. But that was back on 22 October.
But not a peep since. Nor have there been any director transactions or any other kind of news out of the company.
In saying that, the entire ASX telco sector has also shaken off the broader market’s blues today and seen some healthy gains. The ‘big dog’ of the ASX telco space – Telstra Corporation Ltd (ASX: TLS) – had a strong day, gaining 1.01% to $3.99 a share. As did TPG Telecom Ltd (ASX: TPG), which managed a gain of 2.21% to $6.48 a share.
Given the market went backwards today, it seems that the entire ASX telco space was on the receiving end of some goodwill.
A perpetually-public nbn?
One possible explanation is the policy announced by the federal Labor Party, who of course is currently in Opposition, with the next election due sometime next year. According to reporting in the Australian Financial Review (AFR), this policy would see an incoming Labor government shelve plans to privatise the existing National Broadband Network (nbn). Additionally, Labor wants to invest an extra $2.4 billion in the nbn to facilitate more fibre-to-the-home connections.
A public nbn, or this extra investment, might be seen by some investors as a positive for companies offering telco services like Aussie Broadband, Telstra and TPG. That could explain the optimism that was rampant in this sector today.
Or perhaps a large investor simply decided to go shopping in the ASX telco aisle.
Sometimes, we just don’t know why the market throws moves like this around. Today looks like one of those times for Aussie Broadband.
At the last Aussie Broadband share price, this company has a market capitalisation of $1.09 billion.