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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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Commerzbank to Begin Talks with UniCredit Amid Defensive Stance

Commerzbank is preparing to enter discussions with Italy’s UniCredit after the latter acquired a 9% stake in the German bank. According to sources, Commerzbank will likely assign its CFO Bettina Orlopp to lead the talks when its supervisory board meets next week. UniCredit's move signals its interest in a potential pan-European bank merger, but the talks come with significant political and economic challenges, particularly in Germany, where trade unions fear potential job cuts.

Commerzbank’s management is entering these talks out of duty to its shareholders but remains largely opposed to a takeover by UniCredit, one insider revealed. Orlopp, known for navigating Commerzbank through previous tumultuous periods, is expected to steer the discussions, which will focus on the potential implications of a merger and the bank's strategic response.

The interest from UniCredit has drawn backlash in Germany, embarrassing the German government, which inadvertently sold part of its Commerzbank stake to UniCredit without anticipating the move. This marks the latest in UniCredit’s long-standing interest in Commerzbank, with prior approaches made in 2017, 2019, and 2022.

As the discussions unfold, Commerzbank is emphasizing the importance of safeguarding German businesses and avoiding exposure to Italy’s debt risks. The German government, which still holds a 12% stake in Commerzbank, is now being advised not to sell further shares to avoid a complete takeover by UniCredit.

The timing of the takeover discussions is delicate, coinciding with a turbulent political landscape in Germany, where the current coalition government faces pressure ahead of national elections. Meanwhile, Italy’s government has distanced itself from supporting UniCredit’s acquisition strategy.

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