Trade not reversed!

Seems that one broker at DMG made the error. But the SGX may not reverse the trade.

Most likely the people who bought the stock at 27 cents are refusing to comply - they (or he/she) made a profit of over $4 million dollars. Most likely they're on the plane to Bora Bora now- early retirement.


DJ 2nd UPDATE: DBS Trade Causes STI Swoon; Trade Not Reversed (2007-05-25 03:26:00)

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By John Jannarone & Frankie Ho

Of DOW JONES NEWSWIRES

SINGAPORE (Dow Jones)--Singapore''s blue chip Straits Times Index briefly plunged 11% at the start of trading Friday due to a bungled trade involving shares of DBS Holdings Ltd. (D05.SG).

In a trade executed by DMG & Partners, some 187,000 DBS shares changed hands at S$0.27 each, causing the STI to plunge 406 points to a 10-week low of 3124 points in the first minute of trading. DBS shares closed Thursday at S$24.50.

The index quickly recovered, but the Singapore Exchange hasn''t determined whether it will allow the trade to be reversed.

"There was an error trade in DBS," an exchange spokesperson told Dow Jones Newswires. "At this point the trade has not been reversed. We are analyzing the trade and there''s no confirmation on whether or not it will be reversed."

If the trade isn''t reversed, the seller would incur about S$4.4 million in losses to exit the position.

A senior broker at DMG said the trade was supposed to be for warrants but the mother shares were accidentally keyed in.

He said the trade is likely to be reversed as the price was far outside the usual trading range for DBS shares.

Another dealer said that the misplaced trade didn''t cause a lasting disturbance, and market conditions normalized quickly.

"It''s really liquidity that''s driving the market. When the market goes down, you don''t see huge sellers or buyers. Investors just stay out and don''t do anything at all," he said. "Once the market U-turns and goes back up, everyone just comes in again."

The STI was down 1.2% at 3488.79 in midmorning trade. DBS was down 2.4% at S$23.90.