Telstra hits a five-year low

iStock

Telstra shares are down more than 1.4% in early trade to below $3.50.

The last time the share price consistently traded below that figure was in April 2012.

The stock has declined in each session so far this week. Here’s the weekly chart:

Investing.com

Telstra’s share price has been trending lower since it crashed by more than 10% to $3.87 after reporting its full-year results on August 17.

That fall was largely the results of an aggresive response by the market to the announcement of dividend cuts.

Since then, the stock price has steadily fallen by a further 10%, unable to gain any traction as the broader ASX remains stuck at the lower end of its recent trading range.

Telstra shares peaked at $6.50 in 2015 when current CEO Andy Penn took over. The company has subsequently had to announce asset write-downs and cost blow-outs on the National Broadband Network project.

This morning’s fall is part of another broad sell-off across the local share market.

The ASX200 is down by more than 0.3% in early trade, with all of the major sectors lower. Although futures traders have marked the ASX200 higher each day this week, it continues to disappoint.

Since May this year, the ASX200 has been trading in a narrow range between 5,650 and 5,800.

But at 5,652.70 a short time ago this morning, the index is close to falling through the recent 5,650 support level.

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