Chart Source: Poemsview 22nd feb 2018
Sembcorp Marine reported its results in the morning before market opened with it sinking into the red for the fourth quarter with a net loss of $33.78 million. More can be read here.
Also, during the briefing Sembcorp Marine confirmed yesterday that the Brazilian authorities have charged an individual over alleged illegal payments linked to drillship contracts won by the company’s units. More can be read here
Adding to that, some brokerage houses were downgading Sembcorp Marine.
What a turn for Sembcorp Marine. Just a few weeks back, brokerage houses were upgrading this counter and now its taking a bad hit.
If you have drawn a short term downtrend line we might have seen Sembcorp Marine being resisted. Also, do be careful holding a counter over earnings release. These are good measures to have in order not to be caught off guard the next day.
As for now there is a huge volume sell down and more selling might be coming. We’re putting our support at 2.22 then 2.16 area before deciding our next course of action. Lets wait for the dust to settle before entering.
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