Sembcorp down 2.8%; Cogen plant maintenance eyed

Sembcorp is down 2.8% at $4.86 in strong volume, tapping its lowest level since June 7 and underperforming the STI’s 0.8% drop.

Three analysts say they aren’t aware of a specific reason for the decline.

“One thing it may be is that its cogen plant in Singapore is going to be offline for maintenance for 40-45 days,” one analyst says, but he adds, “it should be well-known by the market. Maybe it’s a delayed reaction to that.”

He notes 4Q12 and 1Q13 earnings forecasts may be taken down.

Another analyst says the decline may be due to the stock taking a leg down after it held up fairly well after SembMarine dropped sharply when its earnings disappointed; she notes SembMarine still contributes 60% of Sembcorp’s NAV.

Orderbook quotes suggest the stock won’t retest its $4.80 intraday low.