Hot stock: Sembmarine shoots up 9%, partly led by renewed merger hopes

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SEMBCORP Marine (Sembmarine) shares rallied as high as nearly 13 per cent on Monday on relatively robust turnover with analysts attributing the surge to 'beaten down cyclicals', a rise in crude prices and broader vaccine optimism. Read more at The Business Times.

She added:"With hopes that the vaccine deployment in December could eventually lead to widespread vaccination, there has been anticipation of a recovery in demand within the crude oil market and therefore, its related industries. From a technical perspective, prices have also broken above its 50-day moving average, exhibiting a bullish signal".

Some suspect one other factor that may be galvanising Sembmarine's stock - the big reshuffle at conglomerate Keppel Corp and more specifically theMr Chua, currently the chief executive officer of Keppel DC Reit Management, has extensive experience in the real estate fund management and hospitality industries, including M&A and will drive Keppel's sharpened and more disciplined M&A strategy, said the company in a statement.

That plus the leadership changes at Keppel, chiefly including an individual dedicated to drive M&A, could once again fuel speculation of a mega merger between the two giant rig builders Keppel Offshore & Marine and Sembmarine - a long-anticipated and hoped for but yet to happen consolidation.

 

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