KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
DBS Group Holdings has revised its ambitions in Malaysia, trimming its proposed acquisition of Alliance Bank Malaysia Bhd to a 30% stake after regulators signalled they would not support a larger deal, according to people familiar with the matter.
Southeast Asia’s largest bank had initially sought approval to negotiate for as much as 49% of Alliance Bank, a size that would require Bank Negara Malaysia (BNM) to grant a rare ownership waiver. The central bank declined to entertain that request, prompting DBS to withdraw and refile a proposal aligned with Malaysia’s 30% ownership limit.
The smaller proposal is expected to have a smoother path, the people said, and would allow DBS to formally engage Alliance’s major shareholder, Vertical Theme Sdn Bhd — a Malaysian holding company partly owned by Singapore’s Temasek Holdings. Temasek indirectly owns 49% of Vertical Theme through Duxton Investment & Development and also holds 28.3% of DBS.
Representatives from DBS and Vertical Theme declined to comment. Alliance Bank said it was not aware of the matter, and BNM reiterated its policy of not commenting on acquisition applications involving regulated institutions.
A successful stake purchase would give DBS long-sought access to Malaysia’s retail and SME banking market, where its Singapore peers OCBC and UOB already operate. Alliance Bank, with a market value of RM7.9 billion, rose 2.5% on Monday — its sharpest gain in nearly two months.
Key Takeaways
DBS revises its target from 49% to 30%
The initial proposal required an extraordinary waiver from BNM, which the regulator did not support.
A 30% stake fits Malaysia’s foreign ownership rules
The revised application increases the likelihood of approval and opens the door for discussions with Alliance’s main shareholder.
Strategic push into Malaysia
A deal would give DBS a foothold in a market where other Singaporean banks already operate, strengthening regional competition.
Alliance Bank shares jump
The stock rose 2.5% following the news, the biggest move since early October.
Temasek’s influence looms over both sides
The Singapore state investor is a major shareholder of DBS and indirectly of Alliance’s holding entity.
Comments
Post a Comment