The Straits Times Index (SGX: ^STI) added 1.3% for the week. However, one company differed widely in its performance when compared to the Singapore stock market in general. And that company is Sembcorp Marine Ltd (SGX: S51), whose share price slumped 6% to S$1.42.
Investors offloaded shares in Sembcorp Marine after it announced on Wednesday that the Brazilian authorities have executed a search warrant on Estaleiro Jurong Aracruz Ltda (EJA), a subsidiary of Sembcorp Marine in Brazil. The warrant was linked to the on-going investigations related to Operation Car Wash in the country. Operation Car Wash is Brazil’s biggest anti-graft crackdown that has already hit Sembcorp Marine’s rival Keppel Corporation Limited (SGX: BN4).
Sembcorp Marine said that it understands that the search was related to investigations against Guilherme Esteves de Jesus (GDJ), a former consultant engaged by EJA. GDJ has been arrested by the Brazilian Federal Police and is now facing ongoing criminal charges. Sembcorp Marine added that the current investigations also involve Martin Cheah Kok Choon, the former president of EJA.
- Motley Fool Issues New SGX Buy Alert
- 1 Singapore REIT That’s Perfect for Retirement
- Saving for Retirement: 1 Simple Step to Make a Passive Income Each Month
- 2 Cheap Singapore REITs Offering Exposure to China
- 3 Dividend Shares That Pay Better Than Singapore Post Limited
- 2 Billion-Dollar REITs Paying More Than 3 Times the Fixed Deposit Rate
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.
Motley Fool Singapore 2019