Hot stock: SembMarine shares jump 11.6%, gets SGX query
SHARES of Sembcorp Marine surged on Monday afternoon, prompting a query from the Singapore Exchange (SGX) on the stock's "unusual price movements".
The counter jumped as high as 11.6 per cent to S$1.34 at 2.52pm. The query from the SGX came at 2.05pm, minutes after SembMarine's counter shot up 9.6 per cent to S$1.315. The shares had closed flat at S$1.20 on Friday.
SGX asked if the giant rigbuilder was aware of any information not previously announced which might explain the trading in its shares. It also asked the company to confirm its compliance with mainboard listing rules.
As of 4:01pm, shares of SembMarine were up 12.5 per cent while those of its parent, Sembcorp Industries, jumped 10.6 per cent
SembMarine's share surge came after news of Temasek Holdings' plans to raise its stake in Keppel Corp to 51 per cent with a S$7.35-per-share offer through its wholly-owned subsidiary Kyanite Investment Holdings. Trading in Keppel's shares is currently halted.
KGI Securities analyst Joel Ng said in a note on Monday afternoon that if Temasek held a controlling stake in Keppel, a consolidation between two of Singapore's largest shipyards would be able to proceed. The probability of a merger between Keppel Offshore & Marine and SembMarine has also risen given the removal of the Sete Brasil overhang, he added.
Earlier this month, Keppel and SembMarine reached long-awaited settlements with Sete Brasil for oil rig-building contracts worth billions of dollars that were frozen after their once-biggest customer was forced to file for bankruptcy amid a sweeping corruption probe in Brazil.
"We believe Sembcorp Industries should be the biggest beneficiary of the current developments," said Mr Ng.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Bubble tea maker Chabaidao slumps 10% in Hong Kong’s biggest 2024 debut
Gold edges higher; hovers near one-week low on tempered Middle East fears
Hot stock: Nanofilm jumps 13.1% amid heavy trading on improved Q1 results
Singapore banks lead market surge again on easing Middle East tensions; STI up 1%
Parental fury after stem cell bank ruins thousands of samples in Singapore
SAP cloud revenue meets estimate as AI adoption fuels demand