DBS

DBS: CLSA has a SELL rating, with TP of $17.16. DBS and Temasek have extended their agreement for another two months as they wait to hear back from the Singaporean and Indonesian regulators on reciprocity. This is unsurprising but house also believe it is likely that there will be further extensions of the extended agreement. Although not exactly the same, RHB capital had seven extensions over a period of 30 months relating to its proposed acquisition of Indonesian lender PT Mestika. The proposed Danamon deal is still far from a conclusion, in CLSA's view. CLSA are of the view that investors are becoming increasingly impatient for a decision and while are sympathetic to the difficult situation that DBS’ finds itself in, are hopeful that DBS’ will only allow a few more short extensions before setting a drop dead date.