Lehman rally helps U.S. score best daily gain in 2 weeks
Financial stocks led U.S to make their best daily gain in two weeks on Friday as Lehman Brothers jumped 5% on hopes that the bank may attract a major investor. The rally helped the broader market erase most of the losses suffered in recent days, leaving the Dow and the S&P 500 only a touch below where they were when the week began.

Lehman is among the U.S. banks whose business has been battered by mounting losses sparked by the U.S. housing slump. Lehman's stock has lost nearly 80 percent of its value this year and the investment bank has taken $7 billion in write-downs. Earlier this week, several brokerages forecast more write-downs to come.

Earlier last week, Reuters reported that Kenneth Rogoff, the International Monetary Fund's chief economist from August 2001 to September 2003, had told a conference in Singapore that he sees a consolidation going forward, even from the major investment banks.

Singapore banks led decline last week
In Singapore, banks led the week’s decline. DBS (-5.8% wow, $17.68), UOB (-4.2% wow, $19.10) and OCBC (-1.0% wow, $8.13) contributed a total of 28 index points to the STI’s 2.7% wow slide.

Warrant Action
Trading Call Warrants (Short term bullish view)

1) DBS MBLeCW090204 (GG6W), exercise $17.60, 6 warrants per share.*
2) OCBC Bk MBLeCW090202 (F7BW), exercise $8.30, 3 warrants per share.*
3) UOB MBL eCW081202 (F7IW), exercise $19.70, 6 warrants per share.*

Trading Put Warrants (Short term bearish view)

1)DBS MBL ePW090202 (GD8W), exercise $18.00, 6 warrants per share.*
2) UOB MBL ePW081104(F5EW), exercise $18.50, 6 warrants per share.*

Investment Call Warrants (Long term bullish view)

1) DBS MBL iCW090703 (F4DW), exercise $15.00, 15.0% effective yield, 20 warrants per share.*
2) OCBC Bk MBLiCW081230 (ET3W), exercise $6.00, 12.3% effective yield, 1 warrant per share.*
3) UOB MBL iCW081230 (ET4W), exercise $14.00, 11.4% effective yield, 1 warrant per share.*