Southeast Asia Stocks: Singapore hits six-week closing low on Keppel, Sembcorp

Singapore shares fell for a seventh session in eight on Tuesday, dragged down by stocks of Keppel Corp and Sembcorp Marine which were named among foreign companies that did business with people who are under investigation in Brazil over corruption. The Singapore index closed 0.2 percent lower, with the biggest drag on the index Keppel Corp Ltd down 2.4 percent.
A Keppel Corp unit last week agreed to pay a $422 million fine to resolve charges that it bribed Brazilian officials, including some at state-run oil company Petrobras that has been at the centre of Brazil's largest ever corruption scandal. "The stock could be under pressure in the near term, we see this resolution as removing a key overhang on the stock," Nomura said in a note.
Earlier, Keppel shares tumbled more than 5 percent to their lowest in over two months. Shares of Sembcorp Marine Ltd, which has also been identified in the investigation, closed 3.6 percent lower, with some analysts saying a similar fine would hurt Sembcorp more.
Earlier, the company said it would sell a semi-submersible rig that would result in a loss of about S$24 million ($17.85 million). Malaysian shares were little changed at the close, as gains in industrial and consumer staples were offset by losses in telecommunication stocks.
Telekom Malaysia Bhd dropped nearly 6 percent, its worst intraday session since March 2014, while conglomerate Sime Darby Bhd rose 4.6 percent to its highest in three weeks. Thailand hit a near 24-year closing high, with manufacturer Berli Jucker Pcl climbing 2.8 percent to close at its highest since May 2013. Stock markets in the Philippines and Indonesia were closed for a local holiday.