FRANKFURT AM MAIN, Feb 1 — Shares in German payment processing firm Wirecard plunged for the second time in a week today, after a newspaper report reinforced allegations of fraud in its Asian operations.

Stock in the company, which knocked banking stalwart Commerzbank out of the prestigious DAX blue-chip index last year, plummeted 13 per cent to trade at €126 (RM591) by 3.30pm in Frankfurt (1430 GMT).

The tumble came immediately after the Financial Times reported it had seen documents from lawyers commissioned by Wirecard, showing they found evidence of “serious offences of forgery and/or of falsification of accounts/documents” at the group’s Singapore office.

“There are reasons to suspect that they may have been carried out to conceal other misdeeds, such as cheating, criminal breach of trust, corruption and/or money laundering,” the document seen by the FT continued.

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After its shares crumbled following the earlier report, Wirecard on Wednesday issued a categorical denial of the FT’s original article on suspected fraud at the company, which the paper said was based on a different internal document.

It accused the journalist responsible of publishing “a false, inaccurate, misleading and defamatory article” that “lacks any substance”.

And German financial markets watchdog Bafin said yesterday it was launching an investigation into possible market manipulation over the story.

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Wirecard stunned the traditional German banking sector last year by displacing Commerzbank, which had enjoyed sizeable enough market capitalisation and trading volumes to be listed on the DAX for decades.

Hailed as a champion of the insurgent “fintech” (financial technology) scene with its software for cashless and contactless payments, it then boasted a market valuation of more than €23 billion — outweighing even giant Deutsche Bank.

But since January 1, the stock has shed 5.2 per cent of its value, leaving the firm’s capitalisation at €17.9 billion. — AFP