I wrote about Sembcorp Industries and Sembcorp Marine demerging yesterday in the article below:
Sembcorp Industries and Marine demerger: What you need to know and what to do
In that article, I concluded that the news should be a positive one to Sembcorp Industries as the company can finally become a pure Utilities/Energy play which will aid in a valuation re-rating. There will no longer be the burden of funding its marine arm which has also been loss-making for the past few years.
The price of Sembcorp Industries appreciated by more than 40% at one point in time before closing at S$2.09 today, up 37% from the price before the counter was halted.
Sembcorp Marine’s share price crumbled to as low as S$0.45 before recovering to close at S$0.62, down 27% prior to its halt.
The street consensus seems to favor a continual appreciation of Sembcorp Industries’ share price and reckon that Sembcorp Marine’s share price will continue its downtrend momentum....