DBS results to kick off a difficult week for stocks

ALTHOUGH Wall Street's Friday rebound will help shore up sagging sentiment, it will be DBS's second quarter earnings announcement on Monday - one of the most closely watched events in local market history - that will set the early tone.

Traders need no reminding why - apart from wanting to see how much the bank will be providing for its exposure to the now-failed offshore and marine (O&M) company Swiber Holdings, there will be questions over its lending to the entire O&M industry and its due diligence processes.

Many will also extrapolate from DBS's answers the extent of the hit to other banks and O&M heavyweights. Undoubtedly, short sellers will be among the most interested, having tasted blood in the week since Swiber shocked the market by applying first to be liquidated, then to be placed under judicial management.