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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Malaysia's Gross Loan Growth Steady in June, BNM Data Shows

Malaysia’s gross loan growth remained steady in June, bolstered by an increase in business borrowings which offset a slowdown in consumer lending and corporate bonds, according to data from Bank Negara Malaysia (BNM) released on Wednesday.

Key Points:

  1. Overall Loan Growth:

    • Credit to the private non-financial sector expanded by 5.4% year-on-year in June, maintaining the same growth rate as in May.

  2. Business Loans:

    • Outstanding business loans increased by 5.6% in June, up from 4.8% in May.
    • This growth was driven by loans for working capital and investment-related purposes.
    • Significant loan growth was noted in the construction and services sectors.

  3. Household Loans:

    • Outstanding household loan growth slightly decreased to 6.2% from May’s rate of 6.3%.

  4. Corporate Bonds:

    • Growth in outstanding corporate bonds slowed to 3.4% from May’s 4%.

  5. Loan and Bond Data:

    • The data includes loans to households and non-financial corporations from the banking system and development financial institutions.
    • It also covers corporate bonds issued by non-financial corporations, including short-term papers.

  6. Asset Quality:

    • Asset quality in the banking system remained sound, with gross impaired loans stable at 1.6%.
    • Net impaired loans were also stable at 1% in June.
    • Total provisions stood at RM32 billion, unchanged from the end of May.

  7. Liquidity and Funding:

    • Banks' liquidity and funding positions were supportive of intermediation activity.
    • The aggregate liquidity coverage ratio rose to 155.2% from 149.7% in May.
    • The loan-to-fund ratio increased slightly to 83% compared to 82.2% in May.

BNM’s data highlights a steady lending environment with robust business loan growth balancing out slower consumer lending and corporate bonds growth. The sound asset quality and strong liquidity positions indicate a stable financial system supportive of continued economic activity.

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