Maybank and CIMB shares rose on Tuesday, closing 0.8% and 1.2% higher respectively. Analysts are optimistic about Southeast Asia's economic recovery boosting both banks' regional operations and net interest margins, maintaining 'Buy' ratings. Strong loan growth and improving asset quality are also key factors.
Malaysia's two largest blue-chip banking stocks, Maybank and CIMB, showed strong performance on Tuesday, closing 0.8% higher at RM9.25 and 1.2% higher at RM6.80 respectively. Analysts noted that despite cautious overall market sentiment, investor optimism regarding economic growth in the Southeast Asian region buoyed the shares of both banks. With the recovery in regional trade and tourism, both banks are expected to maintain healthy loan growth, while net interest margins (NIM) will also benefit from the interest rate environment. Several investment banks maintained 'Buy' ratings for both banks, with target prices of RM10.50 and RM7.80 respectively, citing their robust balance sheets and diversified regional revenue streams. Upcoming quarterly results are anticipated to further affirm their strong fundamentals.
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