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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.