SYDNEY, June 9, 2026, 04:03 AEST
Telstra Group Limited shares are set to resume trading on Tuesday after a long weekend with one fresh test: whether the stock can steady now that a A$1.25 billion buyback has ended. The shares last closed at A$4.97 on Friday, down 4.61% from A$5.21 seven days earlier, after trading as low as A$4.89 in the session.
The timing matters. ASX’s cash market was closed on Monday for the King’s Birthday holiday, with no trading or settlement activity, so investors have not yet had a full session to price the end of Telstra’s buying support after the extended break.
Telstra’s final buyback notice, dated June 4, showed the company bought back 245,892,740 ordinary shares for total consideration of A$1,249,999,998.72. An on-market buyback means a company buys its own shares through the exchange, usually to return surplus capital and reduce the number of shares on issue; Telstra’s notice said the highest price paid was A$5.40 and the lowest was A$4.78.
That is not just paperwork. A smaller share count can lift earnings per share, which is profit spread across fewer shares, but the close of the programme also removes a regular buyer from the market. That gives Tuesday’s open a cleaner read on ordinary demand for the stock.
The broader tape has not helped. The S&P/ASX 200 fell 0.70% to 8,625.10 on Friday as banks and miners dragged the market lower, even though most sectors finished higher. Telstra tends to trade more like an income and infrastructure stock than a cyclical miner, but weak index tone can still curb buyers after a long weekend.
The company’s operating story is steadier than last week’s chart suggests. In February, Telstra reported a 9.4% rise in first-half profit to A$1.12 billion, helped by mobile income, and narrowed its full-year EBITDAaL guidance to A$8.2 billion-A$8.4 billion. EBITDAaL is operating earnings after lease costs, a profit measure often used by telecoms companies.
Chief Executive Vicky Brady said at the time that “the on-market share buyback is expected to support earnings and dividend per share growth.” Zavier Wong, market analyst at eToro, was also quoted by Reuters as saying Telstra remained “one of the most defensive names on the ASX” outside AI and technology upgrades. Reuters
Competition remains the harder question. Telstra faces pressure from Optus and TPG Telecom in mobile, where price rises, coverage claims and customer churn can quickly change the market’s view of earnings quality. The company has leaned on mobile and broadband, while TPG and Optus have used network-sharing arrangements to sharpen their challenge in parts of the country.
But the downside case is plain. If mobile customer growth slows, if price increases push more users to cheaper plans, or if network investment costs rise, the buyback’s per-share boost may not be enough to keep the stock near recent levels. The end of the buyback also means there is less mechanical demand under the shares if the wider ASX stays soft.
For the week ahead, traders will watch whether Telstra can hold Friday’s A$4.89 low and whether volume stays heavy after the break. A quick rebound would suggest investors still value the dividend and defensive earnings profile. A break lower would point to a market asking for new proof now that the company’s own buying has stopped.
