Local Banks Outperforming in Singapore Open Interest Reminder

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					Toll-free Hotline: 800 852 3577                                             30 Sept 2008 (Tues)

Local Banks Outperforming in Singapore
The Draft bill, a USD 700 billion rescue plan proposed by Treasury Secretary Henry Paulson, was announced Sunday. The
draft legislation would authorize USD 250 billion immediately, with another USD 100 billion upon presidential certification. A
further USD 350 billion would also be available subject to congressional approval. Despite the positive news, investors
remain wary of the health of the global economy. Singapore benchmark index declined 50.12 to close at 2,361.34 led by
property stocks.

Local banks have been outperforming in Singapore market in the past week. Straits Times Index (“STI”) declined 7.2% while
DBS, OCBC and UOB declined 1.6%, 6.7% and 4.6% respectively. The 3-month SIBOR rose more than 34% to 3.79% in
September. DBS continue to benefit from the recent rise. The technical outlook of DBS is neutral. The share continues to
range trading between SGD 16.6 and SGD 17.42. It is unclear which direction the share is heading towards. Investors who
believe DBS will continue to outperform the market may consider its call warrant DBSbnpECW081218 (GF5W). It is one of
the most traded DBS call warrant in the market with a total traded volume of 2.1m.

DBS is amongst one of the most traded warrant underlying in the market followed by UOB. There has been a rather strong
resistance at the SGD 17 level in the past few days. Investors who believe the share may retest the resistance may consider
its call warrant UOBbnpECW090112 (GK5W). It is the most traded UOB call warrant in the market with a total traded
volume of 9.4m. Despite OCBC has the weakest technical outlook, investors have began accumulating on its call warrants.
The share tested the Feb 08 low and was able to sustain above it. Investors who believe the share will be able to sustain
above the SGD 7.05 level may consider its call warrant OCBbnpECW090128 (GK6W). It is also the most traded OCBC call
warrant in the market with a total traded volume of 768k.

                                               Official             Strike                              Effective      Warrant
  Underlying           Warrant Name                       Type                   Maturity      Ratio
                                                Code                (SGD)                               Gearing      Price (SGD)*
      DBS           DBSbnpECW081218            GF5W        Call      18.68      18-Dec-08        5        9.3x           0.110
     OCBC           OCBbnpECW090128            GK6W        Call      8.08       28-Jan-09        3        7.4x           0.105
     UOB            UOBbnpECW090112            GK5W        Call      18.68      12-Jan-09        6        7.5x           0.130
* Warrant prices are indicative and computed based on the relevant underlying obtained from Bloomberg on 29 Sept 2008 after market
close, assuming implied volatility remains unchanged.

Open Interest Reminder
The open interest of STIbnpECW081230Q (GM8W) is more than 50%. The warrant price may not move according to its
effective gearing. Investors may consider switching to another STI call warrant with a lower open interest -
STIbnpECW081230R (GP8W). It is one of the most traded STI call warrant in the market with a total traded volume of 7.6m.

3 Month SIBOR (September)                                                                                        Source: Bloomberg
DBS Group Ltd (“DBS”)
                                                     Last           5D SMA   20D SMA    250 D SMA

                                             SGD 16.9 (-0.12%)      16.94     17.19       18.66

                                                       Prev. Day      5D       30 D       52 Wk

                                              High          17.32    17.32     18.26      23.00

                                              Low           16.62    16.58     15.46      15.46
                                                                                 Source: Bloomberg

Overseas-Chinese Banking Corp Ltd (“OCBC”)
                                                     Last           5D SMA   20D SMA    250 D SMA

                                             SGD 7.07 (-1.26%)       7.38     7.66        8.21

                                                       Prev. Day      5D       30 D       52 Wk

                                              High          7.31      7.58     8.27        9.40

                                              Low           7.05      7.05     7.05        7.05
                                                                                 Source: Bloomberg

United Overseas Bank Ltd (“UOB”)
                                                     Last           5D SMA   20D SMA    250 D SMA

                                             SGD 16.66 (-0.83%)     17.05     17.94       19.02

                                                       Prev. Day      5D       30 D       52 Wk

                                              High          17.26    17.26     19.40      22.90

                                              Low           16.40    16.40     15.60      15.38
                                                                                 Source: Bloomberg
BNP Paribas Warrant Top-Picks
                                                                      Official                       Strike                                                   Effective           Warrant Price
   Underlying                     Warrant Name                                        Type                              Maturity               Ratio
                                                                       Code                          (SGD)                                                    Gearing               (SGD)*
      STI                    STIbnpECW081230R                         GP8W              Call          2,350            30-Dec-08                 500            4.7x                 0.365
      STI                    STIbnpEPW081230R                         GP9W              Put           2,350            30-Dec-08                 500            5.6x                 0.380
      HSI                    HSIbnpECW081127Q                         GP4W              Call         18,600            27-Nov-08                 500            6.8x                 0.445
      HSI                    HSIbnpEPW081127Q                         GP5W              Put          18,000            27-Nov-08                 500            5.7x                 0.555
   Capitaland                CAPbnpECW090128                          GL7W              Call          3.98             28-Jan-09                  2             6.2x                 0.080
     DBS                     DBSbnpECW090202                          GO5W              Call          17.58             2-Feb-09                  6             6.1x                 0.215
  Keppel Corp                KEPbnpECW090105                          GL2W              Call          9.93              5-Jan-09                  3             8.8x                 0.060
     SGX                     SGXbnpECW081128                          F9PW              Call          6.28             28-Nov-08                  3             7.4x                 0.105
      SIA                     SIAbnpECW081215                         F9OW              Call          14.88            15-Dec-08                  4             8.0x                 0.185
    SingTel                  STEbnpECW090123                          GL3W              Call          3.48             23-Jan-09                  2             7.1x                 0.075
* Warrant prices are indicative and computed based on the relevant underlying obtained from Bloomberg on 29 Sept 2008 after market close,
assuming implied volatility remains unchanged.

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