Malaysia's two largest banks, Maybank and CIMB, performed strongly on Friday, rising 1.2% and 1.5% respectively. Investors anticipate robust earnings reports from the banking sector, driven by economic recovery and sustained loan growth. This positive sentiment reflects improving asset quality and stable interest rate outlook, bolstering confidence in financial institutions.
Malayan Banking Bhd (Maybank) shares climbed 1.2% to RM9.35, while CIMB Group Holdings Bhd rose 1.5% to RM6.80, making them key contributors to the KLCI's gains on Friday. Investor optimism in banking stocks stems from positive expectations for the upcoming fourth-quarter earnings reports. Analysts predict that loan demand will remain robust as the Malaysian economy continues its recovery, while non-performing loan ratios are expected to stay manageable. Furthermore, Bank Negara Malaysia's decision to maintain the Overnight Policy Rate (OPR) provides a stable environment for banks' net interest margins. Other financial counters like Public Bank Bhd also saw modest gains of 0.8%.
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