KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
BS Group CEO Piyush Gupta announced on Wednesday that the bank is in the process of raising its stake in a China securities joint venture from 51% to 91%, as part of its strategic move to strengthen its presence in China's capital markets.
This announcement follows a series of aggressive measures by China aimed at revitalizing its struggling economy and capital markets. DBS confirmed that it is acquiring the stakes being sold by its Chinese JV partners, though the transaction is still subject to regulatory approval.
Gupta emphasized that DBS plans to maintain a 91% holding in the JV platform, while continuing to leverage the value its Chinese partners bring to the business. DBS joins other foreign banks like JPMorgan and Morgan Stanley in increasing stakes in China’s securities JVs, following the lifting of the country’s foreign ownership cap.
The move comes as China’s sluggish economy and markets have pressured the profitability of securities companies. However, the recent stimulus measures introduced by Beijing, including a 500 billion yuan swap program aimed at providing easier funding access to financial institutions, have renewed optimism in the sector.
Sebastian Paredes, DBS’s head of North Asia and CEO for Hong Kong, expressed confidence in the measures, stating that they are sufficient to stimulate the economy and restore trust in the markets.
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