Stock Downgraded: OCBC with rating of "underperform" by Bear Stearns

OCBC may extend losses after Bear Stearns slashed its rating on the stock to "underperform" citing concerns over the bank's earnings prospects due to weak lending growth. "While we concede that OCBC's asset sales program should provide support for the group's current high share price over the next few months, we are unclear about the group's future core earnings growth," Bear Stearns said in a note. CIMB-GK Research cut its price target for the bank to 6.75 sgd from 7.20. "OCBC had provision writebacks and that served to pad up below-par results. The quality of earnings was not inspiring though," it said. OCBC slipped 0.15 sgd to finish trading at 6.65 yesterday.