Shares of telecommunications companies were more or less flat as traders hedged their bets on the outlook for Federal Reserve policy. Telecoms have benefited in recent weeks from speculation on consolidation in the sector and on the effects of a new 5G network on growth prospects. But the sector remains particularly vulnerable to changes in interest rates because many fixed-income investors toggle between high-dividend telecom stocks and Treasurys, depending on the difference between rates and dividend yields. Vodafone Group agreed to support a South Korean telecommunications service offered by the Korean conglomerate LG.
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(END) Dow Jones Newswires
June 05, 2017 16:37 ET (20:37 GMT)