Singapore’s Top Stock of 2020 Faces a Rougher Ride Next Year

  • Sembcorp has surged on demerger of loss-making marine unit
  • Don’t expect power demand to increase too sharply, Chua says
Photographer: Ore Huiying/Bloomberg
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Equity investors have given Singapore’s Sembcorp Industries Ltd. a big thumbs-up this year after it shed its loss-making marine unit. But 2021 may prove to be a lot less euphoric, according to analysts.

The utilities firm is 2020’s top gainer on the benchmark Straits Times Index, after being the worst performer in the preceding five-year period. However, concerns over the economic recovery in some of Sembcorp’s biggest markets are emerging, adding pressure to further gains.