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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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UK Banks Gear Up for Lending Surge Amid Labour’s Ambitious Housebuilding Plans

 

The UK’s banking sector is preparing for a significant uptick in residential development financing, driven by the new Labour government’s ambitious plans to tackle the nation’s housing shortage. Following Labour's landslide victory in July, the government has made homebuilding a central part of its economic growth strategy, prompting developers to boost the supply of homes and increasing demand for lending in this sector.

Key Takeaways:

  1. Increased Certainty and Planning Reforms: The Labour government’s long-term stability, with at least five years in power, has provided much-needed certainty for developers and lenders alike. The party’s commitment to reforming the planning system, including making it easier to build on the green belt and reinstating mandatory local housing targets, has been welcomed by housebuilders. This is expected to unlock more development opportunities, particularly with the recruitment of 300 new planning officers aimed at expediting the approval process.

  2. Lenders Poised to Capitalize on Demand: Several prominent residential development finance lenders anticipate a surge in borrowing as Labour's planning policies take effect. OakNorth Bank Plc, for instance, has already completed significant transactions in the residential sector since Labour's election win, including a £50 million loan for a mixed-use scheme in London. With institutional investors showing strong interest in build-to-rent and student housing, lenders are increasingly confident in the development financing market, viewing residential projects as safer, less cyclical investments.

  3. Challenges and Gradual Growth: Despite the optimistic outlook, some industry experts caution that the recovery in development financing may be slow and steady rather than immediate. Factors such as high interest rates, build-cost inflation, and the time required to implement Labour’s proposed legislation could temper the pace of growth. Nonetheless, the sector is expected to see incremental improvements as reforms take hold, with banks like Shawbrook Bank Ltd adjusting their focus to align with the anticipated increase in demand.

In summary, while the Labour government’s housebuilding agenda offers promising opportunities for the UK’s lending market, the road to a full recovery in development financing is likely to be gradual, shaped by ongoing economic conditions and the implementation of key policy reforms.

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