KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
HSBC Holdings Plc, Standard Chartered Plc, and Singaporean banks are set to report earnings amid a backdrop of tepid loan growth, presenting challenges for their financial performance.
Key Points:
HSBC & Standard Chartered:
- Net Interest Margins: Hong Kong banks, including HSBC and Standard Chartered, are under pressure due to falling Hibor rates, impacting net interest margins (NIMs).
- Leadership and Revenue: HSBC’s incoming CEO Georges Elhedery faces the challenge of increasing revenue in a falling rate environment and is expected to focus on cost-cutting efforts. Standard Chartered is likely to meet the higher end of its net interest income guidance for 2024 due to a supportive rate environment.
- Buybacks: Both banks are anticipated to announce new share buybacks, with Standard Chartered expected to announce a US$1 billion share buyback.
Singapore Banks (OCBC & UOB):
- Loan Growth: Overall lending may pick up in the second half of the year, although weak business demand could persist for a few more months.
- Monetary Policy: Singapore's central bank has kept its tight monetary policy unchanged, with a resilient local currency helping to temper price pressures.
- Earnings Impact: UOB's second-quarter net income might be pressured by lower mortgage growth amid property cooling measures, while OCBC's revenue growth may be constrained by low loan growth but supported by strong fee income from the wealth business.
Upcoming Highlights:
Saturday:
- ICICI Bank: Expected to post its slowest quarterly profit growth since 2020, impacted by higher deposit costs, though it remains positioned to expand loans comfortably.
Tuesday:
- Standard Chartered: Expected to announce a US$1 billion share buyback with steady margins and a significant jump in net interest income.
- Nomura: Likely to report double-digit revenue growth in wealth management due to elevated market volumes, despite potential declines in investment banking flows.
Wednesday:
- HSBC: Focus will be on potential revenue-boosting strategies expected later in 2024. Margins may be supported by easing deposit competition and stable Hibor rates.
- Singapore Air: First-quarter profit likely impacted by higher fuel costs, with ongoing freight disruption supporting high airfreight rates in the second half of 2024.
- Samsung: Stable sales growth expected in its mobile division, driven by new Galaxy smartphones and a recovery in memory chip sales.
Thursday:
- UOB: Second-quarter net income likely pressured by lower mortgage growth and margin pressure amid property cooling measures.
- MUFG: Quarterly profit expected to drop 24%, with top executives having taken pay cuts to restore client confidence.
Friday:
- OCBC: Revenue growth may be limited by low loan growth, though strong fee income from the wealth business provides a boost.
- Nintendo: First-quarter operating profit likely to decline 49%, with new game launches potentially providing some respite.
- SMFG: Quarterly profit expected to grow 13%.
The banking sector faces a complex environment with slow loan growth and varying economic pressures, influencing their financial strategies and performance outlook.
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