Hot stock: DBS shares drop 2.5% on S$700m Swiber exposure
SHARES of DBS fell 2.5 per cent on Friday after the bank revealed on Thursday evening that it has a total exposure of about S$700 million to the Swiber group of companies, and expects only half of this to be recovered because the exposure is only partially secured.
The stock lost 39 Singapore cents, to S$15.49, as at 9.04am.
Singapore's largest bank said it will tap its general allowance to provide for the anticipated shortfall, bringing the net allowance charge to S$150 million.
The disclosure followed Swiber Holdings' stunning move earlier in the day to wind up the company, confirming market rumours about DBS's significant exposure to the beleaguered oil-services firm.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Mixed trading in Asia as investors watch for further macro data; STI down 0.2%
Vietnam delays launch of new stock trading system
Hong Kong bourse regains favour on hopes of a market revival
Asia: Markets rise as strong US tech earnings offset poor data
Singapore shares open lower on Friday; STI down 0.1%
Stocks to watch: CLI, Great Eastern, MIT, Sheng Siong, iFast, OUE, Far East Orchard