The post-EI net profit included an FX loss of $95 million from the deferred payment note.
In addition, Sembcorp indicated that the FX impact of a stronger Singapore dollar was $23 million in 1HFY2025.
Sembcorp could still make up lost ground in 2HFY2025 to attain Goldman Sachs’ forecasts, but the market may be expecting a more conservative outlook.
Sembcorp ended the week at $6.72, down more than 13% during Aug 8’s trading session. Analysts who updated their Sembcorp research reports maintained their "buy" recommendations.
See also: REIT Index points to upside as STI continues consolidation
Year-to-date, Sembcorp is still up 21.7% as of Aug 8, with a total return of 24.9%. Sembcorp maintained its interim dividend at 9 cents, and its operating and free cash flow were both positive.
Technically, Sembcorp’s price chart appears to have undergone a price shock. There were negative divergences before the decline, so the corrective phase may need to run its course before a rebound.
Support is at $6.17, at the 200-day moving average. Sembcorp ended the week at $6.72, below both the 50- and 100-day moving averages.
See also: STI to continue correction; here are the supports for Sembcorp, DBS and STE
The negative divergences between the Straits Times Index and its quarterly momentum and its 21-day RSI are also very evident. Both indicators appear poised to break below supports which may lead to a few more weeks of consolidation. Support remains at 4,000. The STI ended the week at 4,239.
In the past week, Yangzijiang Shipbuilding was the top gainer but year-to-date, its total return based on Bloomberg’s calculations is a meagre 1.4%.
There could well be more upside following a break above resistance $2.62 during the week of Aug 4-8 despite 21-day RSI testing 74. Yangzijiang closed at $2.87 on Aug 8.
