Hot stock: Sembcorp Industries hit more than 3-year high, prompting SGX query

SHARES of Sembcorp Industries hit more than a 3-year high on Thursday (Apr 7), prompting a query from the Singapore Exchange (SGX) on its "unusual price movements".

The mainboard-listed counter reached a high of S$2.91 at 3.47 pm, up 7.4 per cent or S$0.20, with some 13.1 million shares changing hands.

The last time the utilities company traded at such a level was in October 2018, before it shed its loss-making marine unit in 2020.

Taking into account adjustments from the demerger, Bloomberg data shows the last time U96 was trading near this level was 14 years ago in January 2008.

Thursday's brisk trading prompted a query from the bourse operator at about 3.35 pm.

A while later, the counter pulled back from the high of S$2.91 to S$2.87 at 3.57 pm, up 5.9 per cent or S$0.16.

It hovered at this range over the next hour of trading and closed at S$2.87 on Thursday.

No married deals were recorded, according to data from Shareinvestor.

In a bourse filing after trading hours, Sembcorp said it was compliant and was not aware of any information not previously announced that might explain the trading.

Sembcorp said it is always evaluating and strategically bidding on certain opportunities, but there is no transaction that is likely at the moment.

It noted that there have been media articles as recent as a few days ago that speculated about such opportunities.

"The company has been closely monitoring but no unusual trading of the company's shares was observed," Sembcorp added, without identifying specific news reports.

Indian news outlet Mint on Monday reported that Sembcorp was among three companies shortlisted to acquire green energy producer Mytrah Energy India. The deal is potentially worth around US$2 billion in enterprise value, Mint said, citing unnamed sources.

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