Singapore Hot Stocks-DBS falls, denies Kuwaiti exposure talk

SINGAPORE, Jan 12 (Reuters) - DBS Group (DBSM.SI) slid as
much as 3.8 percent on Monday on speculation about exposure to
a Kuwaiti lender that defaulted on its debt, though the
Singapore bank denied it had any such exposure.

Dealers said DBS shares had been hit on speculation over
DBS's exposure to Global Investment House (GLOB.KW), Kuwait's
biggest investment bank, which defaulted on most of its debt in
the first of several expected casualties among financial firms
in the wealthy oil producer due to the credit crunch
[ID:nL8123879].

"Contrary to recent media reports and media speculation,
DBS has no exposure to Kuwaiti bank Global Investment House."
said a DBS spokeswoman in a statement.

A dealer said DBS's poor earnings outlook for 2009 was
preventing a recovery in its share price as investors are
concerned about its loan exposure outside Singapore.

By 0641 GMT, DBS was down 3.4 percent to S$8.13.

The benchmark Straits Times index fell by 0.93 percent.

KEPPEL, COSCO

Singapore-listed oil rigbuilders and shipping stocks fell
on Monday after several contract cancellations, leading to
fears over orders in a sector hit by weakening economic growth
and falling oil prices.

Sembcorp Marine (SCMN.SI) slid as much as 11 percent and
industry leader Keppel Corp (KPLM.SI) also fell up to 8
percent, after oil services firm Seadrill (SDRL.OL) said on
Friday it will postpone payments for rigs from both firms and
after Keppel saidon Friday a $405 million rig order was
cancelled.

DMZ Research in a report on Keppel on Monday maintained a
"neutral" rating for the stock with a target price of S$4.53,
but cautioned Singapore yards may continue to face order
cancellations from highly-geared rig owners.

Shipbuilder and ship repair firm Cosco Corp QCOSC.SI fell
as much as 9.1 percent, after India's Great Eastern Shipping Co
GESC.SI said last week it cancelled two contracts with
theChinese firm.

By 0410 GMT, the benchmark Straits Times index was down
1.08percent.
(Reporting by Kash Cheong; Editing by Neil Chatterjee)