SINGAPORE - The benchmark Straits Times Index (STI) closed flat on March 18 ahead of the United States central bank’s policy decision midweek.
The gauge was down 1.03 points, or 0.03 per cent, to 3,171.93.
Seatrium closed at 8.1 cents – a 52-week low – and 9 per cent or 0.8 cent lower, despite some brokerages making a “buy” recommendation on the stock in view of the offshore and marine player’s stronger balance sheet, improved liquidity and a clear path to profitability.
Ms Peggy Mak, research manager at Phillip Securities Research, however, noted from Seatrium’s recent Investor Day that its net debt target suggests net borrowings are expected to rise to $2 billion to $3 billion from $750 million at end-2023.
She said that unless the order book can rise at the same pace or faster – the order book was $16 billion as at 2023 – “taking on more debt in an environment where interest costs are higher year on year does not bode well for margins”.
The counter saw some 1.8 billion shares transacted on March 18, accounting for more than half of the bourse’s trading volume of over three billion securities with a total value of $968.5 million.
Philippine alcohol maker Emperador was up 8.8 per cent or 3.5 cents to 43.5 cents, despite having been dropped from the STI at the market open on March 18, after a review of the bourse constituents.
Across the broader market, decliners beat gainers 296 to 261.
Although a rate cut is not expected from the US Federal Reserve’s announcement on March 20, investors are looking out for its summary of economic projections. THE BUSINESS TIMES
