Malaysia's banking giants, Maybank and CIMB, saw their share prices decline by 1.2% and 0.9% respectively today, dragging down the financial sector. Investors are concerned about the future trajectory of banks' Net Interest Margins (NIMs), particularly amidst stabilizing interest rate expectations, which could impact profitability in the coming quarters.
Malaysia's banking sector underperformed today, with heavyweights Maybank dropping 1.2% to RM9.50 and CIMB falling 0.9% to RM6.35. Investors are re-evaluating the profitability of banks in the current interest rate environment, particularly the outlook for Net Interest Margins (NIMs). Although Bank Negara Malaysia (BNM) recently maintained the Overnight Policy Rate (OPR), market expectations for further rate hikes are limited, which could pressure banks' margins. Furthermore, concerns about a global economic slowdown are prompting investors to remain cautious about bank asset quality. Analysts believe that banking stocks may face some short-term adjustments, but their long-term fundamentals remain solid.
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