SINGAPORE - Sembcorp Marine shares rallied as high as nearly 13 per cent on Monday on robust turnover with market watchers attributing the surge to"beaten down cyclicals", a rise in crude prices, broader vaccine optimism - and renewed hopes for a merger.
Trading activity on the counter was also higher with 217 million shares done and worth nearly $31 million, making it the day's fifth most active by midday trading. Crude prices firmed during the Asian session on Monday, led by continued optimism since last week on the progress of coronavirus vaccine developments and their rollout. The encouraging news have fuelled hope that economic activity could pick up and alongside that, energy demand, despite the continued rise in Covid-19 cases in many countries. Brent, the key global oil benchmark is up 0.4 per cent, while West Texas Intermediate rose 0.2 per cent.
Keppel has earlier said that its offshore and marine unit, hit by the pandemic-led oil slump, was under a strategic review where"all options, both organic and inorganic" were being considered.