Baring among those cautious on Singapore rig builders; Mobius takes contrarian view

Singapore

THE world's two biggest builders of oil rigs saw their stocks rise the most in more than two years last month as crude rebounded. But investors looking for more gains shouldn't get their hopes up just yet, Baring Asset Management and Henderson Global Investors say.

Keppel Corp surged 13 per cent and Sembcorp Marine Ltd rose 7.8 per cent in March, the largest monthly gains since January 2012 and September 2013 respectively. Oil climbed briefly above US$40 a barrel last month, a level not seen since December.

Oil companies and rig operators remain at risk of rising debt and spending cuts, and are abandoning or delaying orders of offshore drilling rigs and production facilities as crude pri…