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SINGAPORE - SHARES of DBS Group Holdings rose as much as 3.1 per cent on Monday to $18.46 with 3.6 million shares traded, adding to Friday's gains after research notes were positive on Southeast Asia's largest lender.
Deutsche Bank analysts gave DBS a 'buy' rating, citing cheap valuation of the stock and the firm's removal of sub-prime exposure. However, key risks included a 'stronger-than-expected slowdown in the global economy' and continued risk from sub-prime-related losses affecting global financials.
DBS said on Friday that quarterly profits fell 18 per cent due to further writedowns linked to the global credit crisis, but the decline was less than feared and its shares rose 3.5 per cent.
DBS announced $200 million in writedowns, at the top end of market forecasts for $150-$200 million, but said that it was cautiously optimistic about the year ahead despite financial market turmoil.
Credit Suisse analysts maintained an 'outperform' rating on DBS's stock but said the falling Sibor (Singapore Interbank Offered Rate) remained a risk.
At 11.01am, the Straits Times Index was up 0.25 per cent. -- REUTERS
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