Maybank and CIMB's share prices rose by 0.6% and 0.9% respectively on Friday, driven by an improving economic growth outlook in Southeast Asia and robust loan growth expectations. Analysts have maintained an 'Overweight' rating on the banking sector, citing strong fundamentals and potential for dividend payouts.
Malaysia's two banking giants, Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd, saw strong performance in Friday's trading session. Maybank rose 0.6% to RM9.25, while CIMB gained 0.9% to RM6.80. This rally was primarily fueled by optimistic market sentiment regarding economic recovery in the Southeast Asian region and the robust business performance of both banks regionally. Analysts anticipate healthy loan growth and improved net interest margins as business activities and consumer spending increase. Concurrently, solid asset quality and reasonable valuations have made the banking sector a favorite among investors. Most research houses maintain an 'Overweight' rating on the banking sector, citing its dividend potential.
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