Apple Pencil functionality with Pages

I just updated Pages to the new version which supports the Apple Pencil. To my dismay, I am no longer able to use the Pencil for anything other than drawing silly objects and annotating!

Until now I could select text, scroll up and down the pages, and do all sorts of useful things with the Pencil. I specifically bought the Pencil for this purpose - to make using the iPad Pro convenient when it is placed on the keyboard and to avoid reaching for the screen when using it with the keyboard. I can no longer do any of that. Now, as soon as I place the Pencil on the screen it defaults to the drawing/scribbling option. When I click ‘Done’ to get rid of the option, the Pencil does not do anything on the screen, I.e. cannot scroll, move the page up and down or select text, etc.

Is there something I am missing or is the Pencil genuinely no longer usable with Pages for anything other than drawing objects and scribbling?