DBS    Last:42.08    -0.22

DBS

hey anybody thought of who is gaining that Euro$4.9billion of loss that SG suffers? Somebody's Loss is Somebody's Gain. And the US economy will come back with a vengence in the second half due to the large FED cuts and stimulus package. The most interesting part of the package is the increade of loan limits of FHA for Fennie and Freddi Mae to finance those jumbo loans and the tax claims for capital investment by companies. The Monies are all on the sidelines. Wait for the confidence to built up man.

 

DBS will gap up yeasterday lost of 4.5% or more as it fell worse amongst the three big, back with a vengeance.....

High possibilities of interest rate cut at US will prop up the overall market.....

 

Many factors has resulted a lost... be it the french bank or the selling sentiments... Banks are always the risk taker and the frontline that will be hit...Also due to its blue... STI drop 4%  and DBS drop 4.6%....  

 

Investor still digesting the rate cut, anyway, impact won't be felt immediately....

 

The rate cut was done in desperation...

The result was obvious, as shown by the Dow's heavy after the cut (investors exiting) ... 

It's unlikely to help the  market's underlying true state...  

 

75 basis pts for a lousy 0.30 cts rise in DBS

Mkt today should have $2 rise for DBS !

People buy and hold fearfully later

VERDICT - Not worth the rate cut at all !!!!

 

DBS, hopeless leow, at this volatile market. I painfully downloaded it yesterday morning, but still can sleep well, as sometime you make and sometime you lose. Cheers.

 

buay steady one ...  only wayang wayang in the morning

 

DBS will be power back strongly when the market rise....Fed rate cut today might do the trick...

 

Every banks or shares have suffered the down falls, so are the BLUES. They suffered hefty losses. Buying power is back today at 4.30pm... DBS has make a remarkable $1 gain back from its losses.

Good sign in the short term...  

 

Bank of China just suspended from trading. What's going on ???

 

TA signals for DBS look very bearish.

Price cuts below lower Bollinger band with Acc/Dist and Chaikin downtrending. 

 

Singapore's DBS to vote for TMB recapitalisation



SINGAPORE, Nov 27 (Reuters) - DBS Group , Southeast Asia's biggest lender by assets, said on Tuesday that it has not yet decided whether to subscribe to the rights issue of Thailand's TMB Bank , but it would vote in favour of the recapitalisation process.

"We are currently exploring various options and have not made any decision on whether DBS will subscribe to the rights yet," said Karen Ngui, a spokeswoman for the bank.

Last month DBS failed in its bid to raise its 16 percent stake in TMB Bank after Dutch lender ING won the bidding process.

 

After having earlier held back from participating in the recapitalisation of Thailand's TMB Bank, DBS Group Holdings, is now taking part. The Singapore bank could also be  looking for other Thai opportunities. Sources at the Ministry of Finance, the single largest shareholder of TMB, have said that the ministry, DBS and the new partner, Dutch bank ING, have all agreed to participate in recapitalising the ailing TMB. Reports from the ministry suggest that 97% of the top 20 shareholders of TMB bank have already agreed to participate in the capital increase. DBS, which had earlier stated that it would require management control of TMB in exchange for participating in the capital increase, has reportedly agreed to its allocation of 2.97 billion shares at 1.40 baht a share. Against this, a stake of 25 billion shares is set to be sold to ING at 1.60 baht a share. The MOF is also participating by subscribing for 5.58 billion shares at 1.40 baht each.

 

lucky168. Hope this give you some guidance on the direction. But before jumping into the market, please do your homework first.

Dow Jones] Singapore banks should be ripe for re-rating in 1Q08, but there could be few more months of CDO turbulence first, says BNP Paribas. "Another quarter of CDO charges should put the issue behind us, setting the stage for bank stocks to be re-rated in the latter part of 1Q08." Adds earnings concerns already largely reflected in valuations, trading at one standard deviation below post-Asian financial crisis rolling P/E average. Rates all three banks Buy with order of preference as DBS (D05.SG) with target price of S$25.00, UOB ( U11.SG) with target price of S$25.60, OCBC (O39.SG) with target price of S$10.40.

 

Credit Suisse - New report: the CEO we would wish for

● The departure of Jack Tai has left DBS without a CEO. We pondered who would be best for the job: our .dream. CEO.

● Our dream CEO.s raison d.être would be to elevate DBS.s sustainable ROE (by 2%) to 15% by 2010. Our optimal CEO would: 1) focus on Singapore, where DBS is the smallest local bank in loan market share - S$ LDR is only 50% - and could grow consumer/ SME loans; 2) leave Hong Kong on autopilot; 3) build a respectable market share in other markets in Asia; 4) avoid acquisitions for now (no more .surplus. equity anyway); 5) kitchensink CDO provisions to put this issue in the past; and 6) make DBS an attractive stock to own.

● DBS.s stock price has suffered due to CDO holding as well as concerns over margin compression resulting from lower SIBOR and prime-HIBOR spreads (which is changing). Appointment of a hands-on commercial banker would be a positive, in our view.

● Our target price is based on 2.0x P/B and 15x P/E, assuming sustainable ROEs of 13-14% and cost of equity of 10.1%. If DBS can demonstrate 15% ROEs, we could justify 2.5x P/B.

Serious improvements possible in S.pore (2/3rd of profits)

Almost all of S.pore banks with DBS (in deposits, not loans), which gives it a 50bp advantage on deposit cost, so its margins should be higher relative to its peers. We would like to see DBS lift its S$ LDR from 50% by raising market share in SME/consumer loans; also make treasury more consistent, trim and make costs more variable, work on consumerrelated fee, and improve service and products in consumer banking.

Leave Hong Kong on autopilot

Ex-DaoHeng is a high quality operation, contributing 30% of group profits and generating 18-19% ROEs compared with 11-12% estimated for Singapore. DBS-HK has gained loan market share and managed margins quite well, despite a volatile prime-HIBOR spread.

Grow in other markets

Net profit contribution of 5-6% ex-HK and Singapore is not acceptable, in our view.

Avoid acquisitions for now

DBS needs to enjoy higher valuation multiples before it can buy something, we believe. There is no more .surplus. equity anyway.

Kitchen-sink CDO provisions; buy the stock

Pressured by what we see as an ill-handled CDO disclosure, and OCBC raising the bar by providing 82% against ABS-CDOs, our optimal CEO would go for a S$150-250 mn of provisions (four-fifths of 4Q07E profits) to settle the matter.

Make DBS an attractive stock

Our CEO of choice would also improve internal controls, run a tight ship, issue hybrid Tier 1 to finance growth, and try not to cut dividends, making the stock attractive to investors.

 

Shareholders do not like to hear this type of news.

DBS says China profits years away. DBS Group said it may take 10 years for China to start making a meaningful contribution to the bank's bottomline. DBS is looking to emerging Asian markets to boost its earnings, about 90% of which currently comes from Singapore and Hong Kong. DBS plans to boost staff in China by about three times from 650 now to 2,000 in five years as it expands into 14 cities, Mr Wong said, DBS's chief operating officer and vice-chairman.

 

TA indicators are still showing more down trend.

If you are a long term investor, this is a good entry price.

If you are short term investor, wait for TA indicators to indicate a buy signal.

 

what price is good for entry?

 

CITI - DBS Fails in its 11th Hour Bid for TMB Bank

 TMB chooses ING?Thailand's TMB Bank announced that ING Group will take a 30.1% stake in the bank at an improved offer price of Bt1.60/share, rejecting the late bid made by a DBS-led group at the same price. DBS will be diluted to an estimated 6.8% stake (from 16.1%) and could still see further impairment charges, depending on how TMB is valued going forward.

 ING injects capital in TMB at improved price of Bt1.60?ING will take a 30.1% stake in TMB Bank, versus original terms of a 25.2% stake at Bt1.40. ING will take the additional 4.9% as non-voting depositary receipts (NVDRs). This is the only change from the original capital injection plan, with all other domestic parties including the Thai MoF continuing to subscribe at Bt1.40. TMB announced that the total capital injection rises to Bt37.6bn from Bt35bn.

 Impact for DBS?With the number of new shares issues unchanged at 25bn, DBS will see its stake diluted from 16.1% to an estimated 6.8% of the enlarged shares. Using Sept 2007 data, TMB's post recap book value/share remains unchanged at Bt1.51, although the adjusted BV/shr post provision write-down could still, in our view, be substantially lower. DBS will continue to assess further impairment charges on TMB, likely based on quarter-end share prices.

 Another failed DBS M&A bid? It is still not clear why DBS decided to do a complete about-turn and decide to make this bid for TMB. We remain of the view that DBS's capital and management pool is better applied to other opportunities such as growing in Indonesia.