European Telecoms "Chart of the week" Tang

Research evidence excerpt

European Telecoms "Chart of the week" Tang

Global Research

3 July 2026ab

European Telecoms Equities

Europe including UKChart of the week

Telecommunications

Polo Tang

Figure 1: European sectors performance over the past 1m

Analyst

polo.tang@ubs.com

rfo +44-20-7568 1286

Ondrej Cabejsek

pe

ondrej.cabejsek@ubs.com

s +44-20-7568 6332

Dhruva Kusa Shah

tor

dhruva-kusa.shah@ubs.com

sec +44-20-7568 3395

Oba Agboola pean

Associate Analyst

obaloluwa.agboola@ubs.com

Euro o p +44-20-7568 3969

1m

the Christina Michael

Associate Analyst rmance ver ast

christina.michael@ubs.com

+44-20-7567 2376

Source: Refinitiv Datastream

Why has the sector pulled back so aggressively in the past weeks?

European Telecoms has been the worst performing sector in the European market over

the past 1m, down -12% (Figure 1Europeansectorsperformanceoverthepast1m). However, this must be put into the context of strong

performance YTD prior to the recent pullback. Post the correction, the sector is still a

modest outperformer (+10%) vs the broader European market (+8%) – see Figure 2EuropeansectorsperformanceYTD.

The performance by stock over 1m and YTD is broken out in Figure 3Performancebystockoverthepast1m/Figure 4PerformancebystockYTD

respectively – the stocks most impacted over the past 1m are 1&1, United Internet and

Deutsche Telekom. The stocks that have relatively outperformed over the past month are

Inwit, KPN and Tele2. We think the recent sector pullback has been driven by three

separate factors: [1] Rotation into more cyclical sectors post a resolution of the Middle

East Conflict – historically the sector has been a place to hide during times of geopolitical

uncertainty / conflict (link); [2] Concerns over the impact of satellites on the sector but