Sembcorp Marine share price ripped apart by corruption probe
On 3 July 2019, Sembcorp Marine share price collapsed 9% after revelation that its subsidiary in Brazil, Estaleiro Jurong Aracruz Ltda (“EJA”), had been stormed by the Brazilian authorities. The raid was in relation to a corruption probe, nicknamed “Operation Car Wash”.
Sembcorp Marine share price see red
Sembcorp Marine to ride out the storm
After the news broke, I fear the worst for Sembcorp Marine share price.
The corruption crackdown came at a time when Sembcorp Marine is still struggling to handle the industry slump. The timing is definitely bad because it is nearly light at end of tunnel for Sembcorp Marine share price as oil price had recovered to a reasonable USD70 per barrel level in recent months. The latest bombshell is an unexpected setback for the oil rig builder. No wonder investors are riled by the latest news.
Should investors brave the storm with Sembcorp Marine or run for their lives? Make no mistake, it had been a long winter for Sembcorp Marine share price. Five years to be exact. For those who refuse to cut loss in this counter, they must brace themselves for yet another roller-coaster ride.
Sembcorp Marine share price walloped
Obviously, the big boys took the opportunity to whack Sembcorp Marine share price.
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