STI drops below 3,600 on O&G worries

AS the global elites focus their attention on the Swiss alpine town of Davos, where the World Economic Forum is being held, investors in Singapore were more anxious about the colour of Keppel Corp's books. The diversified marine conglomerate released its fourth-quarter results after the close of the market on Thursday.

"There have been a lot of concerns in the oil and gas industry. The latest being the hefty fine of US$422 million slapped on Keppel Offshore & Marine (KOM) for bribes to officials in Brazil. The results should provide a clearer indication as to whether the worst is indeed over for the oil and gas sector," said one analyst.

Keppel Corp, which is expected to book its provisions for the fine, hit S$8.65 a share before succumbing to some profit-taking. It ended at S$8.58, down five Singapore cents, or 0.6 per cent, on about five million shares.