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 ...
Key Takeaway: Japan's largest banks—MUFG, Sumitomo Mitsui, and Mizuho—have raised profit forecasts to record levels and announced substantial share buyback plans, benefiting from higher domestic interest rates and a strong stock market.
Japan’s leading banks are set for a combined ¥3.7 trillion (US$24 billion) profit this fiscal year, as rising interest rates and gains from share disposals fuel their earnings. Mitsubishi UFJ Financial Group (MUFG) projects ¥1.75 trillion in net income, while Sumitomo Mitsui Financial Group revised its profit target to ¥1.16 trillion and Mizuho Financial Group expects ¥820 billion.
Each bank has unveiled buyback plans, with MUFG targeting ¥300 billion, Sumitomo Mitsui aiming for ¥150 billion, and Mizuho planning its first buyback since 2008, with ¥100 billion worth of shares set for repurchase by March.
Key Figures:
- MUFG: 1.75 trillion yen profit forecast; first-half profit surged 36% to ¥1.3 trillion.
- Sumitomo Mitsui: 1.16 trillion yen profit target; first-half profit up 38% to ¥725.2 billion.
- Mizuho: 820 billion yen profit projection; first-half profit rose 36% to ¥566.1 billion.
The banks are also benefiting from a weaker yen, which enhances the value of overseas earnings. Additionally, Japan's banks continue to unwind cross-shareholdings, boosting profits as they dispose of corporate shares at near-record stock prices.
While US President-elect Donald Trump’s policies are seen as favorable for business, bank leaders caution about potential inflation and trade tensions. Japanese bank stocks have seen significant gains this year, with Mizuho up 46%, MUFG rising 48%, and Sumitomo Mitsui jumping 58%.
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