KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
The upcoming third-quarter earnings season in the U.S. will begin with the nation’s largest banks, offering a critical gauge of economic health amid a partial government shutdown that has delayed key macro data.
Analysts expect S&P 500 earnings to rise 8.8% year-on-year in Q3 2025, with major banks forecasted to outperform, posting double-digit EPS growth driven by a rebound in investment banking and steady lending.
JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo report results on Oct 14, followed by Bank of America and Morgan Stanley on Oct 15.
Key Themes Driving Results
- Investment Banking Recovery:U.S. banks announced 52 M&A deals worth US$16.6 billion in Q3—the most since 2021—supported by greater regulatory clarity and improved corporate confidence. IPO activity also hit its strongest level since late 2021.
- Trading Revenues:Elevated volatility across equities, fixed income, currencies, and commodities boosted client trading volumes, particularly for Goldman Sachs and Morgan Stanley.
- Net Interest Income:Margins are stabilizing, with NIMs forecast to hold at 2.39% for the group. BAC’s net interest income is projected to grow 3% year-on-year, though lower rates could pressure future yields.
- Credit Quality:Loan-loss provisions are expected to remain flat at US$8.4 billion, with non-performing assets below 1%. Consumer and corporate borrowers remain resilient despite softer sentiment.
Bank-Specific Forecasts
JPMorgan: EPS +9.6% YoY to US$4.79, revenue +6.5% to US$45.4 billion.
Bank of America: EPS +16% YoY to US$0.94, revenue +8.2% to US$27.4 billion.
Citigroup: EPS US$1.76, revenue +3.9% YoY to US$21.1 billion.
Goldman Sachs: EPS +31% YoY to US$11.04, revenue +10.8% to US$14.1 billion.
Morgan Stanley: EPS +11% YoY to US$2.09, revenue +7.9% to US$16.6 billion.
Wells Fargo: EPS +8% YoY to US$1.54, revenue +3.7% to US$21.1 billion.
Market Outlook
Strong results could reinforce expectations of a “soft landing” for the U.S. economy, while cautious loan growth or rising provisions may reveal emerging weaknesses.
The revival in dealmaking and healthy consumer balance sheets provide tailwinds, but sustained momentum will depend on interest rate trends and the resilience of AI-driven corporate investments.
Comments
Post a Comment